AN ACT relating to
elections; requiring advisory questions to be specifically identified as such
on the ballot and sample ballot; setting forth the order in which advisory
questions must be listed on a ballot; restricting the entities that may submit
an advisory question for appearance on a ballot for a general election or
general city election; requiring that advisory questions be accompanied by a
fiscal note if the particular advisory question pertains to certain topics
relating to bonds, taxes, fees and expenses; setting forth the required
contents of a fiscal note; requiring the Committee on Local Government Finance
to prepare certain sample advisory ballot questions to demonstrate the
preparation of required fiscal notes; and providing other matters properly relating
thereto.

[Approved: June 11, 2003]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1.NRS 293.268 is hereby amended to
read as follows:

293.268 The offices for which there are candidates,
the names of the candidates therefor, and the questions to be voted upon must
be printed on ballots in the following order:

1. President and Vice President of the United States.

2. United States Senator and Representative in
Congress, in that sequence.

(b) Councilmen according to ward in numerical order, if
no wards, in alphabetical order; and

(c) Municipal judges.

10. Township nonpartisan offices.

11. Questions presented to the voters of the State[.] with advisory questions listed in
consecutive order after any other questions presented to the voters of the
State.

12. Questions presented only to the voters of a
special district or political subdivision of the State[.] with advisory questions listed in
consecutive order after any other questions presented only to the voters of a
special district or political subdivision of the State.

Sec. 2. NRS
293.481 is hereby amended to read as follows:

293.481 1. Except as otherwise provided in subsection
2 or NRS 295.121 or 295.217, every governing body of a political subdivision,
public or quasi-public corporation, or other local agency
authorized by law to submit questions to the qualified electors or registered
voters of a designated territory, when the governing body decides to submit a
question:

or quasi-public corporation, or other local agency authorized
by law to submit questions to the qualified electors or registered voters of a
designated territory, when the governing body decides to submit a question:

(a) At a general election, shall provide [a
copy of the question, including an explanation of and arguments for and against
the question,] to each county clerk within the designated
territory on or before the third Monday in July preceding the election [.] :

(1)
A copy of the question, including an explanation of the question;

(2)
Arguments for and against the question; and

(3)
If the question is an advisory question that proposes a bond, tax, fee or
expense, a fiscal note prepared by the governing body in accordance with
subsection 4 of NRS 293.482.

(b) At a primary election, shall provide [a
copy of the question, including an explanation of and arguments for and against
the question,] to each county clerk within the designated
territory on or before the third Monday in May preceding the election [.] :

(1)
A copy of the question, including an explanation of the question;

(2)
Arguments for and against the question; and

(3)
If the question is an advisory question that proposes a bond, tax, fee or
expense, a fiscal note prepared by the governing body in accordance with
subsection 4 of NRS 293.482.

(c) At any election other than a primary or general
election at which the county clerk gives notice of the election or otherwise
performs duties in connection therewith other than the registration of electors
and the making of records of registered voters available for the election,
shall provide [a copy of the question, including an explanation of and
arguments for and against the question,] to each county
clerk at least 60 days before the election [.] :

(1)
A copy of the question, including an explanation of the question;

(2)
Arguments for and against the question; and

(3)
If the question is an advisory question that proposes a bond, tax, fee or
expense, a fiscal note prepared by the governing body in accordance with
subsection 4 of NRS 293.482.

(d) At any city election at which the city clerk gives
notice of the election or otherwise performs duties in connection therewith,
shall provide [a copy of the question, including an explanation of and
arguments for and against the question,] to the city clerk
at least 60 days before the election [.] :

(1)
A copy of the question, including an explanation of the question;

(2)
Arguments for and against the question; and

(3)
If the question is an advisory question that proposes a bond, tax, fee or
expense, a fiscal note prepared by the governing body in accordance with
subsection 4 of NRS 293.482.

2. A question may be submitted after the dates
specified in subsection 1 if the question is expressly privileged or required
to be submitted pursuant to the provisions of Article 19 of the Constitution of
the State of Nevada, or pursuant to the provisions of chapter 295 of NRS or any
other statute except NRS 293.482, 354.59817, 354.5982, 387.3285 or 387.3287 or
any statute that authorizes the governing body to issue bonds upon the approval
of the voters.

3. A county or city clerk may charge any political
subdivision, public or quasi-public corporation or other local agency which
submits a question a reasonable fee sufficient to pay for the increased costs
incurred in including the question, explanation ,[and]
arguments and fiscal note on
the ballot.

Sec. 3. NRS
293.482 is hereby amended to read as follows:

293.482 1. The governing body of [any]a county or city
may, at any general election or general city election, ask the advice of the
registered voters within its jurisdiction on any question which it has under
consideration .[by
adopting]No
other political subdivision, public or quasi-public corporation or other local
agency may ask the advice of the registered voters within its jurisdiction on
any question which it has under consideration.

2. To
place an advisory question on the ballot at a general election or general city
election, the governing body of a county or city must:

(I) The question, in language indicating clearly that the
question is advisory only;

(II)
An explanation of [and arguments]the question;

(III)
Except as otherwise provided in NRS 295.121 and 295.217, arguments for
and against the question [, to be submitted to the voters; and

(b)]; and

(IV)
If the question is an advisory question that proposes a bond, tax, fee or
expense, a fiscal note prepared by the governing body in accordance with
subsection 4; and

(2)
States that the result of the voting on the question does not
place any legal requirement on the governing body , any member of the governing body or any
officer of the political subdivision [.

2.]; and

(b) Comply
with the requirements of paragraph (a) or (d) of subsection 1 of NRS 293.481.

3. A
governing body may, at any general election, ask the advice of the registered
voters of part of its territory if:

(a) The advisory question to be submitted affects only
that part of its territory; and

(b) The resolution adopted pursuant to subsection [1]2 sets forth the
boundaries of the area in which the advice of the registered voters will be
asked.

4. With
respect to a fiscal note that is required in connection with an advisory
question:

(a) If, in
the advisory question, the governing body seeks advice on whether bonds should
be issued, the fiscal note must include any information that is required by law
to be included on the sample ballot pursuant to the provisions of law that
govern the procedure for issuance of the applicable type of bond.

(b) If, in
the advisory question, the governing body seeks advice on whether a limitation
upon revenue from taxes ad valorem should be exceeded, the fiscal note must
include any information that is required by law to be included on the sample
ballot pursuant to the provisions of law that govern the procedure for
exceeding that limitation.

(c) If, in
the advisory question, the governing body seeks advice on whether a tax other
than a property tax described in paragraph (b) should be levied, the fiscal
note must:

(1)
Identify the average annual cost that is expected to be incurred by the affected
taxpayers if the tax were to be levied;

(2)
Specify the period over which the tax is proposed to be levied;

(3)
Disclose whether, in connection with the levy of the tax, revenue bonds are to
be sold which will be backed by the full faith and credit of the assessed value
of the applicable local government; and

(4)
If applicable, specify whether, in connection with or following the levy of the
tax, additional expenses are expected to be incurred to pay for the operation
or maintenance of any program or service to be provided from the proceeds of
the tax or to pay for the operation or maintenance of any building, equipment,
facility, machinery, property, structure, vehicle or other thing of value to be
purchased, improved or repaired with the proceeds of the tax.

(d) If, in
the advisory question, the governing body seeks advice on whether a fee should
be imposed, the fiscal note must:

(1)
Identify the average annual cost that is expected to be incurred by the
affected users if the fee were to be imposed;

(2)
Specify the period over which the fee is proposed to be imposed; and

(3)
If applicable, specify whether, in connection with or following the imposition
of the fee, additional expenses are expected to be incurred to pay for the
program or service to be provided from the proceeds of the fee or to pay for
the operation or maintenance of any building, equipment, facility, machinery,
property, structure, vehicle or other thing of value to be purchased, improved
or repaired with the proceeds of the fee.

(e) If, in
the advisory question, the governing body seeks advice on whether the
applicable local government should incur an expense, the fiscal note must:

(1)
Identify the source of revenue that will be used to pay the expense;

(2)
Disclose whether it is expected that the incurring of the expense will require
the levy or imposition of a new tax or fee or the increase of an existing tax
or fee; and

(3)
If a tax or fee is proposed to be levied or imposed or increased to pay the
expense, contain the information required pursuant to paragraph (c) or (d), as
applicable.

5. On the
sample ballot for the general election or general city election, each advisory
question must appear:

(a) With a
title in substantially the following form: Advisory Ballot Question No. ....;
and

(b) With
its explanation, arguments and, if required, fiscal note.

6. The
Committee on Local Government Finance shall prepare sample advisory ballot
questions to demonstrate, for each situation enumerated in paragraphs (a) to
(e), inclusive, of subsection 4, examples of the manner in which fiscal notes
should be prepared.

(a) The fiscal note, as provided pursuant to NRS
218.443 ,[or]
293.250, 293.481 or 293.482, for
each proposed constitutional amendment [or statewide measure;] , statewide measure, measure to be
voted upon only by a special district or political subdivision and advisory
question;

(b) An explanation, as provided pursuant to NRS
218.443, 293.250, 293.481, 293.482
or 295.121, of each proposed constitutional amendment [or
statewide measure,], statewide measure, measure to be voted upon only by a
special district or political subdivision and advisory question, including
arguments for and against it; and

(c) The full text of each proposed constitutional
amendment.

2. Sample ballots that are mailed to registered voters
may be printed without the full text of each proposed constitutional amendment
if:

(a) The cost of printing the sample ballots would be
significantly reduced if the full text of each proposed constitutional
amendment were not included;

(b) The county clerk ensures that a sample ballot that
includes the full text of each proposed constitutional amendment is provided at
no charge to each registered voter who requests such a sample ballot; and

(c) The sample ballots provided to each polling place
include the full text of each proposed constitutional amendment.

3. At least 10 days before any election, the county
clerk shall cause to be mailed to each registered voter in the county a sample
ballot for his precinct with a notice informing the voter of the location of
his polling place. If the location of the polling place has changed since the
last election:

(a) The county clerk shall mail a notice of the change
to each registered voter in the county not sooner than 10 days before mailing
the sample ballots; or

(b) The sample ballot must also include a notice in
bold type immediately above the location which states:

NOTICE: THE LOCATION
OF YOUR POLLING PLACE

HAS CHANGED SINCE THE
LAST ELECTION

4. Except as otherwise provided in subsection 5, a
sample ballot required to be mailed pursuant to this section must:

(a) Be printed in at least 12-point type; and

(b) Include on the front page, in a separate box
created by bold lines, a notice printed in at least 20-point bold type that
states:

NOTICE: TO RECEIVE A
SAMPLE BALLOT IN

LARGE TYPE, CALL
(Insert appropriate telephone number)

5. A portion of a sample ballot that contains a
facsimile of the display area of a voting device may include material in less
than 12-point type to the extent necessary to make the facsimile fit on the
pages of the sample ballot.

6. The sample ballot mailed to a person who requests a
sample ballot in large type by exercising the option provided pursuant to NRS
293.508, or in any other manner, must be printed in at least 14-point type, or
larger when practicable.

7. If a person requests a sample ballot in large type,
the county clerk shall ensure that all future sample ballots mailed to that
person from the county are in large type.

8. The county clerk shall include in each sample
ballot a statement indicating that the county clerk will, upon request of a
voter who is elderly or disabled, make reasonable accommodations to allow the
voter to vote at his polling place and provide reasonable assistance to the
voter in casting his vote, including, without limitation, providing appropriate
materials to assist the voter.

9. The cost of mailing sample ballots for any election
other than a primary or general election must be borne by the political
subdivision holding the election.

Sec. 5. NRS 293C.262 is hereby amended to
read as follows:

293C.262 1. The offices for which there are
candidates, the names of the candidates therefor and the questions to be voted
upon must be printed on ballots for a city election in the following order:

(a) City offices:

(1) Mayor;

(2) Councilmen according to ward in numerical
order, if no wards, in alphabetical order; and

(3) Municipal judges.

(b) Questions presented to the voters of a city or a
portion of a city[.] with advisory questions listed in
consecutive order after any other questions presented to the voters of the
city.

2. The city clerk:

(a) May divide paper ballots into two sheets in a
manner that provides a clear understanding and grouping of all measures and
candidates.

(b) Shall prescribe the color or colors of the ballots
and voting receipts used in any election which the clerk is required to
conduct.

Sec. 6. NRS 293C.530 is hereby amended to
read as follows:

293C.530 1. At least 10 days before an election, the
city clerk shall cause to be mailed to each registered voter in the city a
sample ballot for his precinct with a notice informing the voter of the
location of his polling place. If the location of the polling place has changed
since the last election:

(a) The city clerk shall mail a notice of the change to
each registered voter in the city not sooner than 10 days before mailing the
sample ballots; or

(b) The sample ballot must also include a notice in
bold type immediately above the location which states:

NOTICE: THE LOCATION
OF YOUR POLLING PLACE

HAS CHANGED SINCE THE
LAST ELECTION

2. Except as otherwise provided in subsection 3, a
sample ballot required to be mailed pursuant to this section must:

(a) Be printed in at least 12-point type; [and]

(b) Include
the fiscal note and explanation, as required pursuant to NRS 293.481 or
293.482, of each citywide measure and advisory question, including arguments
for and against it; and

(c) Include
on the front page, in a separate box created by bold lines, a notice printed in
at least 20-point bold type that states:

3. A portion of a sample ballot that contains a
facsimile of the display area of a voting device may include material in less
than 12-point type to the extent necessary to make the facsimile fit on the
pages of the sample ballot.

4. The sample ballot mailed to a person who requests a
sample ballot in large type by exercising the option provided pursuant to NRS
293.508, or in any other manner, must be printed in at least 14-point type, or
larger when practicable.

5. If a person requests a sample ballot in large type,
the city clerk shall ensure that all future sample ballots mailed to that
person from the city are in large type.

6. The city clerk shall include in each sample ballot
a statement indicating that the city clerk will, upon request of a voter who is
elderly or disabled, make reasonable accommodations to allow the voter to vote
at his polling place and provide reasonable assistance to the voter in casting
his vote, including, without limitation, providing appropriate materials to
assist the voter.

7. The cost of mailing sample ballots for a city election
must be borne by the city holding the election.

Sec. 7. NRS 295.121 is hereby amended to read
as follows:

295.121 1. In a county whose population is [100,000]40,000 or more, for
each initiative, referendum or other question to be placed on the ballot by the
board or county clerk, including, without limitation, pursuant to NRS 293.482,
295.115 or 295.160, the board shall, in consultation with the county clerk
pursuant to subsection 4, appoint two committees. Except as otherwise provided
in subsection 2, one committee must be composed of three persons who favor
approval by the voters of the initiative, referendum or other question and the
other committee must be composed of three persons who oppose approval by the
voters of the initiative, referendum or other question.

2. If, after consulting with the county clerk pursuant
to subsection 4, the board is unable to appoint three persons who are willing
to serve on a committee, the board may appoint fewer than three persons to that
committee, but the board must appoint at least one person to each committee
appointed pursuant to this section.

3. With respect to a committee appointed pursuant to
this section:

(a) A person may not serve simultaneously on the
committee that favors approval by the voters of an initiative, referendum or
other question and the committee that opposes approval by the voters of that
initiative, referendum or other question.

(b) Members of the committee serve without
compensation.

(c) The term of office for each member commences upon
appointment and expires upon the publication of the sample ballot containing
the initiative, referendum or other question.

4. Before the board appoints a committee pursuant to
this section, the county clerk shall:

(a) Recommend to the board persons to be appointed to
the committee; and

(b) Consider recommending pursuant to paragraph (a):

(1) Any person who has expressed an interest in
serving on the committee; and

(2) A person who is a member of an organization
that has expressed an interest in having a member of the organization serve on
the committee.

5. If the board of a county whose population is [100,000]40,000 or more fails
to appoint a committee as required pursuant to this section, the county clerk
shall appoint the committee.

6. A committee appointed pursuant to this section:

(a) Shall elect a chairman for the committee;

(b) Shall meet and conduct its affairs as necessary to
fulfill the requirements of this section;

(c) May seek and consider comments from the general
public;

(d) Shall[,
based on whether the members were appointed to advocate or oppose approval by
the voters of the initiative, referendum or other question,]
prepare an argument either advocating or opposing approval by the voters of the
initiative, referendum or other question[;], based on whether the members were
appointed to advocate or oppose approval by the voters of the initiative,
referendum or other question;

(e) Shall prepare a rebuttal to the argument prepared
by the other committee appointed pursuant to this section; and

(f) Shall submit the argument and rebuttal prepared
pursuant to paragraphs (d) and (e) to the county clerk not later than the date
prescribed by the county clerk pursuant to subsection 7.

7. The county clerk of a county whose population is [100,000]40,000 or more shall
provide, by rule or regulation:

(a) The maximum permissible length of an argument or
rebuttal prepared pursuant to this section; and

(b) The date by which an argument or rebuttal prepared
pursuant to this section must be submitted by the committee to the county
clerk.

8. Upon receipt of an argument or rebuttal prepared
pursuant to this section, the county clerk:

(a) May consult with persons who are generally
recognized by a national or statewide organization as having expertise in the
field or area to which the initiative, referendum or other question pertains;
and

(b) Shall reject each statement in the argument or
rebuttal that he believes is libelous or factually inaccurate.

Not later than 5 days after the county clerk rejects a
statement pursuant to this subsection, the committee may appeal that rejection
to the district attorney. The district attorney shall review the statement and
the reasons for its rejection and may receive evidence, documentary or
testimonial, to aid him in his decision. Not later than 3 business days after
the appeal by the committee, the district attorney shall issue his decision
rejecting or accepting the statement. The decision of the district attorney is
a final decision for the purposes of judicial review.

9. The county clerk shall place in the sample ballot
provided to the registered voters of the county each argument and rebuttal
prepared pursuant to this section, containing all statements that were not
rejected pursuant to subsection 8. The county clerk may revise the language
submitted by the committee so that it is clear, concise and suitable for
incorporation in the sample ballot, but shall not alter the meaning or effect
without the consent of the committee.

10. In a county whose population is less than [100,000:]40,000:

(a) The board may appoint committees pursuant to this
section.

(b) If the board appoints committees pursuant to this
section, the county clerk shall provide for rules or regulations pursuant to
subsection 7.

295.217 1. In a city whose population is [60,000]10,000 or more, for
each initiative, referendum or other question to be placed on the ballot by the
council, including, without limitation, pursuant to NRS 293.482 or 295.215, the
council shall, in consultation pursuant
to subsection 4 with the city clerk [pursuant to subsection 4,]or other city officer authorized
to perform the duties of the city clerk, appoint two committees.
Except as otherwise provided in subsection 2, one committee must be composed of
three persons who favor approval by the voters of the initiative, referendum or
other question and the other committee must be composed of three persons who
oppose approval by the voters of the initiative, referendum or other question.

2. If, after consulting with the city clerk pursuant to
subsection 4, the council is unable to appoint three persons willing to serve
on a committee, the council may appoint fewer than three persons to that
committee, but the council must appoint at least one person to each committee
appointed pursuant to this section.

3. With respect to a committee appointed pursuant to
this section:

(a) A person may not serve simultaneously on the
committee that favors approval by the voters of an initiative, referendum or
other question and the committee that opposes approval by the voters of that
initiative, referendum or other question.

(b) Members of the committee serve without
compensation.

(c) The term of office for each member commences upon
appointment and expires upon the publication of the sample ballot containing
the initiative, referendum or other question.

4. Before the council appoints a committee pursuant to
this section, the city clerk shall:

(a) Recommend to the council persons to be appointed to
the committee; and

(b) Consider recommending pursuant to paragraph (a):

(1) Any person who has expressed an interest in
serving on the committee; and

(2) A person who is a member of an organization
that has expressed an interest in having a member of the organization serve on
the committee.

5. If the council of a city whose population is [60,000]10,000 or more fails
to appoint a committee as required pursuant to this section, the city clerk
shall appoint the committee.

6. A committee appointed pursuant to this section:

(a) Shall elect a chairman for the committee;

(b) Shall meet and conduct its affairs as necessary to
fulfill the requirements of this section;

(c) May seek and consider comments from the general
public;

(d) Shall[,
based on whether the members were appointed to advocate or oppose approval by
the voters of the initiative, referendum or other question,]
prepare an argument either advocating or opposing approval by the voters of the
initiative, referendum or other question[;] , based on whether the members were
appointed to advocate or oppose approval by the voters of the initiative,
referendum or other question;

(e) Shall prepare a rebuttal to the argument prepared
by the other committee appointed pursuant to this section; and

(f) Shall submit the argument and rebuttal prepared
pursuant to paragraphs (d) and (e) to the city clerk not later than the date
prescribed by the city clerk pursuant to subsection 7.

7. The city clerk of a city whose population is [60,000]10,000 or more shall
provide, by rule or regulation:

(a) The maximum permissible length of an argument or
rebuttal prepared pursuant to this section; and

(b) The date by which an argument or rebuttal prepared
pursuant to this section must be submitted by the committee to the city clerk.

8. Upon receipt of an argument or rebuttal prepared
pursuant to this section, the city clerk:

(a) May consult with persons who are generally
recognized by a national or statewide organization as having expertise in the
field or area to which the initiative, referendum or other question pertains;
and

(b) Shall reject each statement in the argument or
rebuttal that he believes is libelous or factually inaccurate.

Not later than 5 days after the city clerk rejects a
statement pursuant to this subsection, the committee may appeal that rejection
to the city attorney[.]or other city officer appointed to
hear the appeal by the city council. The city attorney or other city officer appointed to hear
the appeal shall review the statement and the reasons for its
rejection and may receive evidence, documentary or testimonial, to aid him in
his decision. Not later than 3 business days after the appeal by the committee,
the city attorney or other city
officer appointed to hear the appeal shall issue his decision
rejecting or accepting the statement. The decision of the city attorney or other city officer appointed to hear
the appeal is a final decision for the purposes of judicial
review.

9. The city clerk shall place in the sample ballot
provided to the registered voters of the city each argument and rebuttal
prepared pursuant to this section, containing all statements that were not
rejected pursuant to subsection 8. The city clerk may revise the language
submitted by the committee so that it is clear, concise and suitable for
incorporation in the sample ballot, but shall not alter the meaning or effect
without the consent of the committee.

10. In a city whose population is less than [60,000:]10,000:

(a) The council may appoint committees pursuant to this
section.

(b) If the council appoints committees pursuant to this
section, the city clerk shall provide for rules or regulations pursuant to
subsection 7.

________

κ2003
Statutes of Nevada, Page 3203κ

CHAPTER 487, SB 470

Senate Bill No. 470Committee on Taxation

CHAPTER 487

AN ACT relating to
taxation; authorizing cities that own or operate airports in certain counties
to impose certain taxes on aviation fuel and fuel for jet or turbine-powered
aircraft; revising the method for the distribution of and certain restrictions
on the expenditure of the proceeds of certain taxes on aviation fuel and fuel
for jet or turbine-powered aircraft; and providing other matters properly
relating thereto.

[Approved: June 11, 2003]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1.Chapter 365 of NRS is hereby
amended by adding thereto a new section to read as follows:

Governmental
entity includes, without limitation, an airport authority created by special
legislative act.

Sec. 2. NRS 365.010 is hereby amended to read
as follows:

365.010 As used in this chapter, unless the context
otherwise requires, the words and terms defined in NRS 365.015 to 365.088,
inclusive, and section 1 of this
act have the meanings ascribed to them in those sections.

Sec. 3. NRS 365.170 is hereby amended to read
as follows:

365.170 1. Except as otherwise provided in NRS
365.135, every dealer shall, not later than the last day of each calendar
month:

(a) Render to the Department a statement of all
aviation fuel and fuel for jet or turbine-powered aircraft sold, distributed or
used by him in this state, as well as all such fuel sold, distributed or used
in this state by a purchaser thereof upon which sale, distribution or use the
dealer has assumed liability for the tax thereon pursuant to NRS 365.020,
during the preceding calendar month; and

(b) Pay an excise tax on:

(1) All fuel for jet or turbine-powered aircraft
in the amount of 1 cent per gallon, plus any applicable amount imposed [by the county in which
the fuel is sold, distributed or used] pursuant to NRS
365.203; and

(2) Aviation fuel in the amount of 2 cents per
gallon, plus any applicable amount
imposed [by the county in which the fuel is sold, distributed or used]
pursuant to NRS 365.203,

so sold, distributed or used, in the manner and within the
time prescribed in this chapter.

2. A dealer shall hold the amount of all taxes
collected pursuant to this chapter in a separate account in trust for the
State.

Sec. 4. NRS 365.203 is hereby amended to read
as follows:

365.203 1. The governing body of a city may by ordinance, but not as in
a case of emergency, impose a tax of not more than:

(a) Four
cents per gallon on fuel for jet or turbine-powered aircraft; and

(b) Eight
cents per gallon on aviation fuel,sold,
distributed or used at an airport which is owned or operated by the city in a
county whose population is less than 100,000.

sold,
distributed or used at an airport which is owned or operated by the city in a
county whose population is less than 100,000.

2. A
board of county commissioners may by ordinance, but not as in a case of
emergency, impose a tax of not more than:

(a) Four cents per gallon on fuel for jet or
turbine-powered aircraft ; [sold,
distributed or used in the county;] and

(b) Eight cents per gallon on aviation fuel[.

2.],

sold,
distributed or used in the county, except at an airport where a tax is imposed
pursuant to subsection 1.

3. A
tax imposed pursuant to this section must be imposed on all taxpayers at the
same rate. The city or county
shall not allow any discounts, exemptions or other variance of the rate of the
tax for any taxpayer except for the State or a political subdivision of the
State.

[3.]4. Collection of the tax imposed pursuant to
this section must not commence earlier than the first day of the second
calendar month after adoption of the ordinance imposing the tax.

Sec. 5. NRS 365.545 is hereby amended to read
as follows:

365.545 1. The proceeds of all taxes on fuel for jet
or turbine-powered aircraft imposed pursuant to the provisions of NRS 365.170
or 365.203 must be deposited in the Account for Taxes on Fuel for Jet or
Turbine-Powered Aircraft in the State General Fund and must be allocated
monthly by the Department to the [governmental]:

(a) Governmental
entity which operates the airport at which the tax was collected, if the
airport is operated by a governmental entity;

(b) Governmental
entity which owns the airport at which the tax was collected, [or
if the airport is privately owned , to the county]if the airport is owned but not operated
by a governmental entity; or

(c) County
in which is located the
airport [is located .] at which the tax was collected, if the airport is neither
owned nor operated by a governmental entity.

2. The money so received must be used by the
governmental entity receiving it to pay the cost of:

(a) Transportation projects related to airports,
including access on the ground to airports;

(b) Payment of principal and interest on notes, bonds
or other obligations incurred to fund projects described in paragraph (a);

(c) Promoting the use of an airport [,] located in a county whose population is
less than 400,000, including, without limitation, increasing the
number and availability of flights at the airport;

(d) Contributing money to the Trust Fund for Aviation
created by NRS 494.048; or

(e) Any combination of those purposes.

3. Money so received may also be pledged for the
payment of general or special obligations issued to fund projects described in
paragraph (a) of subsection 2.

4. Any money pledged pursuant to the provisions of
subsection 3 may be treated as pledged revenues of the project for the purposes
of subsection 3 of NRS 350.020.

365.565 1.
The tax derived from aviation fuel must be distributed quarterly
from the Account for Taxes on Aviation Fuel in the following manner:

[1. There]

(a) The
amount of any optional tax must be remitted to the:

(1)
Governmental entity which operates the airport at which the optional tax was
collected, if the airport is operated by a governmental entity;

(2)
Governmental entity which owns the airport at which the optional tax was
collected, if the airport is owned but not operated by a governmental entity;
or

(3)
County in which is located the airport at which the optional tax was collected,
if the airport is neither owned nor operated by a governmental entity.

(b) After
deducting the amount allocated pursuant to paragraph (a), there must
be transferred to the Civil Air Patrol Account, which is hereby created, [from the Account for
Taxes on Aviation Fuel,] for the ensuing fiscal year, a
sum not to exceed $130,000 or the total amount remaining in the [Account,]Account for Taxes on Aviation
Fuel, whichever is less.

(c) After
deducting the amounts allocated pursuant to paragraphs (a) and (b), any
remaining balance in the Account for Taxes on Aviation Fuel must be remitted,
in proportion to the amount of the mandatory tax collected at each airport, to
the:

(1)
Governmental entity which operates the airport at which the mandatory tax was
collected, if the airport is operated by a governmental entity;

(2)
Governmental entity which owns the airport at which the mandatory tax was
collected, if the airport is owned but not operated by a governmental entity;
or

(3)
County in which is located the airport at which the mandatory tax was
collected, if the airport is neither owned nor operated by a governmental
entity.

2. Any
money received by a governmental entity pursuant to subsection 1, except for
the money transferred to the Civil Air Patrol Account, must be used by that
governmental entity in the same manner as money allocated to a governmental
entity pursuant to NRS 365.545.

3. The
amount [so] transferred to the Civil Air Patrol Account pursuant to this section must
be expended for the support of the Nevada Wing of the Civil Air Patrol and is
in addition to and separate from any legislative appropriations made to the
Civil Air Patrol Account for the support of that wing.

[2.]4. Money in the Civil Air Patrol Account may
be paid out only upon claims certified by the Wing Commander and the Wing
Finance Officer and approved by the State Board of Examiners, in the same
manner as other claims against the State are paid.

[3.]5. Money in the Civil Air Patrol Account may
be used only by the wing to:

(d) Fuel for vehicles or aircraft used in an official
mission of the United States Air Force.

[5.]7. Any person who makes a claim against the
Civil Air Patrol Account shall reimburse the Account if payment for the claim
is also received from another source.

[6. There must be remitted to the treasurer of each county
such portion of the remaining balance in the Account for Taxes on Aviation Fuel
as is proportional to the excise taxes remitted by dealers or users in his
county.]

8. As
used in this section:

(a) Mandatory
tax means the tax on aviation fuel collected pursuant to NRS 365.170 without
regard to any optional tax.

Sec. 8. The provisions of this act do not apply to
the administration and use of any money remitted to a county treasurer pursuant
to NRS 365.565 before July 1, 2003.

Sec. 9. This act becomes effective on July 1, 2003.

________

CHAPTER 488, AB 518

Assembly Bill No. 518Committee on Transportation

CHAPTER 488

AN ACT relating to
transportation; imposing certain fees for the operation of livery and
traditional limousines; prohibiting certain motor carriers from engaging in
certain types of misleading advertising; providing for the impoundment of
certain vehicles under certain circumstances; making various changes regarding
the filing of certain applications; making various changes regarding the
disposition of money paid for the special license plate for veterans;
temporarily prohibiting the Transportation Services Authority from accepting certain
applications relating to certificates of public convenience and necessity for
the operation of limousines; temporarily prohibiting fully regulated carriers
from increasing the number of limousines which they operate; directing the
Legislative Commission to conduct a study of issues relating to the allocation
of limousines; authorizing the Transportation Services Authority under certain
circumstances to adopt regulations providing for a system of allocations for
limousines; providing penalties; and providing other matters properly relating
thereto.

[Approved: June 11, 2003]

Whereas, In
Southern Nevada an excessive number of limousines may negatively affect the
integrity and viability of the limousine industry and may negatively affect the
taxi industry, as well as cause conflict between taxi and limousine drivers and
companies which could negatively impact the tourism industries; now, thereforeTHE PEOPLE OF THE STATE OF
NEVADA, REPRESENTED IN

Section 1.Chapter 706 of NRS is hereby
amended by adding thereto the provisions set forth as sections 2 and 3 of this
act.

Sec. 2. 1.
An operator of a limousine shall, beginning on July 1, 2003, and on July 1 of
each year thereafter, pay to the Authority a fee of $100 for each limousine
that the Authority has authorized the operator to operate.

2. As used in
this section, limousine includes:

(a) A livery
limousine; and

(b) A
traditional limousine.

Sec. 3. 1.
It is unlawful for any person to advertise services for which a certificate of
public convenience and necessity or a contract carriers permit is required
pursuant to NRS 706.011 to 706.791, inclusive, and sections 2 and 3 of this
act, unless the person has been issued such a certificate or permit.

2. If,
after notice and a hearing, the Authority determines that a person has engaged
in advertising in a manner that violates the provisions of this section, the
Authority may, in addition to any penalty, punishment or disciplinary action
authorized by the provisions of NRS 706.011 to 706.791, inclusive, and sections
2 and 3 of this act, issue an order to the person to cease and desist the
unlawful advertising and to:

(a) Cause
any telephone number included in the advertising, other than a telephone number
to a provider of paging services, to be disconnected.

(b) Request
the provider of paging services to change the number of any beeper which is
included in the advertising or disconnect the paging services to such a beeper,
and to inform the provider of paging services that the request is made pursuant
to this section.

3. If a
person fails to comply with paragraph (a) of subsection 2 within 5 days after
the date that he receives an order pursuant to subsection 2, the Authority may
request the Commission to order the appropriate provider of telephone service
to disconnect any telephone number included in the advertisement, except for a
telephone number to a provider of paging services. If a person fails to comply
with paragraph (b) of subsection 2 within 5 days after the date he receives an
order pursuant to subsection 2, the Authority may request the provider of
paging services to switch the beeper number or disconnect the paging services
provided to the person, whichever the provider deems appropriate.

4. If the
provider of paging services receives a request from a person pursuant to
subsection 2 or a request from the Authority pursuant to subsection 3, it
shall:

(a) Disconnect
the paging service to the person; or

(b) Switch
the beeper number of the paging service provided to the person.

If the provider
of paging services elects to switch the number pursuant to paragraph (b), the
provider shall not forward or offer to forward the paging calls from the
previous number, or provide or offer to provide a recorded message that
includes the new beeper number.

(a) Advertising
includes, but is not limited to, the issuance of any sign, card or device, or
the permitting or allowing of any sign or marking on a motor vehicle, in any
building, structure, newspaper, magazine or airway transmission, on the
Internet or in any directory under the listing of fully regulated carrier
with or without any limiting qualifications.

(b) Beeper
means a portable electronic device which is used to page the person carrying it
by emitting an audible or a vibrating signal when the device receives a special
radio signal.

(c) Provider
of paging services means an entity, other than a public utility, that provides
paging service to a beeper.

(d) Provider
of telephone service has the meaning ascribed to it in NRS 707.355.

Sec. 4. NRS 706.011 is hereby amended to read as
follows:

706.011 As used in NRS 706.011 to 706.791, inclusive, and sections 2 and 3 of this act, unless
the context otherwise requires, the words and terms defined in NRS 706.013 to
706.146, inclusive, have the meanings ascribed to them in those sections.

Sec. 5. NRS 706.391 is hereby amended to read as
follows:

706.391 1. Upon the filing of an application for a
certificate of public convenience and necessity to operate as a common motor carrier , other than an operator
of a tow car, or an application
for modification of such a certificate, the Authority shall fix a
time and place for a hearing
[thereon.]on the application.

2. The Authority shall [issue such a]grant the certificate
or modification if
it finds that:

(a) The applicant is financially and operationally fit, willing and
able to perform the services of a common motor carrier [;]and that the operation of, and the provision of such
services by, the applicant as a common motor carrier will foster sound economic
conditions within the applicable industry;

(b) The proposed operation or the proposed modification will be
consistent with the legislative policies set forth in NRS 706.151;

(c) The granting of the certificate or modification will not
unreasonably and adversely affect other carriers operating in the territory for
which the certificate or
modification is sought; [and]

(d) The proposed [service]operation or the proposed
modification will benefit and protect the safety and convenience of the
traveling and shipping public and the motor carrier business in this state [.];

(e) The
proposed operation, or service under the proposed modification, will be
provided on a continuous basis;

(f) The
market identified by the applicant as the market which the applicant intends to
serve will support the proposed operation or proposed modification; and

(g) The
applicant has paid all fees and costs related to the application.

3. The Authority shall not find that the potential
creation of competition in a territory which may be caused by the granting of [a
certificate,]the
certificate or modification, by itself, will unreasonably and
adversely affect other carriers operating in the territory for the purposes of
paragraph (c) of subsection 2.

4. [An]In determining whether the applicant is fit to perform the
services of a common motor carrier pursuant to paragraph (a) of subsection 2,
the Authority shall consider whether the applicant has violated any provision of this chapter or any regulations
adopted pursuant thereto.

violated any
provision of this chapter or any regulations adopted pursuant thereto.

5. The applicant
for [such a certificate has]the certificate or modification:

(a) Has the
burden of proving to the Authority that the proposed operation will meet the
requirements of subsection 2 [.

5.]; and

(b) Must
pay the amounts billed to the applicant by the Authority for the costs incurred
by the Authority in conducting any investigation regarding the applicant and
the application.

6. The
Authority may issue or modify a
certificate of public convenience and necessity to operate as a common motor
carrier, or issue or modify it
for:

(a) The exercise of the privilege sought.

(b) The partial exercise of the privilege sought.

[6.]7. The Authority may attach to the
certificate such terms and conditions as, in its judgment, the public interest
may require.

[7.]8. The Authority may dispense with the
hearing on the application if, upon the expiration of the time fixed in the
notice thereof, no petition to intervene has been filed on behalf of any person
who has filed a protest against the granting of the certificate [.]or modification.

(a) Operates a vehicle or causes it to be operated in
any carriage to which the provisions of NRS 706.011 to 706.861, inclusive, and sections 2 and 3 of this act, apply
without first obtaining a certificate, permit or license, or in violation of
the terms thereof;

(b) Fails to make any return or report required by the
provisions of NRS 706.011 to 706.861, inclusive, and sections 2 and 3 of this act, or by the
Authority or the Department pursuant to the provisions of NRS 706.011 to
706.861, inclusive [;], and sections 2 and 3 of this act;

(c) Violates, or procures, aids or abets the violating
of, any provision of NRS 706.011 to 706.861, inclusive [;], and sections 2 and 3 of this act;

(d) Fails to obey any order, decision or regulation of
the Authority or the Department;

(e) Procures, aids or abets any person in his failure
to obey such an order, decision or regulation of the Authority or the
Department;

(f) Advertises, solicits, proffers bids or otherwise
holds himself out to perform transportation as a common or contract carrier in
violation of any of the provisions of NRS 706.011 to 706.861, inclusive [;], and sections 2 and 3 of this
act;

(g) Advertises as providing:

(1) The services of a fully regulated carrier;
or

(2) Towing services,

without including the number of his certificate of public
convenience and necessity or contract carriers permit in each advertisement;

(h) Knowingly offers, gives, solicits or accepts any
rebate, concession or discrimination in violation of the provisions of this
chapter;

(i) Knowingly, willfully and fraudulently seeks to
evade or defeat the purposes of this chapter;

(j) Operates or causes to be operated a vehicle which
does not have the proper identifying device;

(k) Displays or causes or permits to be displayed a
certificate, permit, license or identifying device, knowing it to be fictitious
or to have been cancelled, revoked, suspended or altered;

(l) Lends or knowingly permits the use of by one not
entitled thereto any certificate, permit, license or identifying device issued
to the person so lending or permitting the use thereof; or

(m) Refuses or fails to surrender to the Authority or
Department any certificate, permit, license or identifying device which has
been suspended, cancelled or revoked pursuant to the provisions of this
chapter,

is guilty of a misdemeanor, and upon conviction thereof shall
be punished by a fine of not less than $100 nor more than $1,000, or by
imprisonment in the county jail for not more than 6 months, or by both fine and
imprisonment.

2. [A person convicted of a misdemeanor for a]Any person who, in violation
of the provisions of NRS 706.386 ,
operates as a fully regulated common motor carrier without first obtaining a
certificate of public convenience and necessity or any person who, in violation of the
provisions of NRS 706.421 , operates as a contract motor carrier without first
obtaining a permit is guilty of a misdemeanor and shall be
punished:

(a) For [the]a first offense [,]within a period of 12 consecutive
months, by a fine of not less than $500 nor more than $1,000 .[;]In addition to the fine, the person may
be punished by imprisonment in the county jail for not more than 6 months.

(b) For a second offense within a period of 12 consecutive months and for each subsequent offense
[,]that is committed within a period of 12 consecutive months
of any prior offense under this subsection, by a fine of $1,000 .[; or

(c) For any
offense,]In
addition to the fine, the person may be punished by imprisonment
in the county jail for not more than 6 months .[, or by both the
prescribed fine and imprisonment.]

3. Any person who , in violation of the provisions of NRS 706.386, operates
or permits the operation of a vehicle in passenger service without first obtaining a
certificate of public convenience and necessity [issued pursuant to NRS
706.391] is guilty of a gross misdemeanor.

4. If
a law enforcement officer witnesses a violation of [this subsection, he]any provision of subsection 2 or
3, the law enforcement officer may cause the vehicle to be towed
immediately from the scene [.

4.]and impounded in accordance with
NRS 706.476.

5. The
fines provided in this section are mandatory and must not be reduced under any
circumstances by the court.

[5.]6. Any bail allowed must not be less than the
appropriate fine provided for by this section.

Sec. 7. NRS 417.145 is hereby amended to read as
follows:

417.145 1. The Veterans Home Account is hereby
established in the State General Fund.

2. Money received by the Executive Director or the
Deputy Executive Director from:

(a) Payments by the Department of Veterans Affairs for
veterans who receive care in a veterans home;

(d) Except as otherwise provided in subsection 7, gifts
of money and proceeds derived from the sale of gifts of personal property he is
authorized to accept for the use of veterans homes, if the use of such gifts
has not been restricted by the donor,

must be deposited with the State Treasurer for credit to the
Veterans Home Account.

3. Interest and income must not be computed on the
money in the Veterans Home Account.

4. The Veterans Home Account must be administered by
the Executive Director, with the advice of the Deputy Executive Director and
the Nevada Veterans Services Commission, and the money deposited in the
Veterans Home Account may only be expended for:

(a) The operation of veterans homes;

(b) A program or service related to a veterans home;

(c) The solicitation of other sources of money to fund
a veterans home; and

(d) The purpose of informing the public about issues
concerning the establishment and uses of a veterans home.

5. Except as otherwise provided in subsection 7, gifts
of personal property which the Executive Director or the Deputy Executive
Director is authorized to receive for the use of veterans homes:

(a) May be sold or exchanged if the sale or exchange is
approved by the State Board of Examiners; or

(b) May be used in kind if the gifts are not
appropriate for conversion to money.

6. All money in the Veterans Home Account must be
paid out on claims approved by the Executive Director as other claims against
the State are paid.

7. The Gift Account for Veterans Homes is hereby
established in the State General Fund. The Executive Director or the Deputy
Executive Director shall use gifts of money or personal property that he is
authorized to accept and which the donor has restricted to one or more uses at
a veterans home, only in the manner designated by the donor. Gifts of money
that the Executive Director or Deputy Executive Director is authorized to
accept and which the donor has restricted to one or more uses at a veterans
home must be deposited with the State Treasurer for credit to the Gift Account
for Veterans Homes. The interest and income earned on the money in the Gift
Account for Veterans Homes, after deducting any applicable charges, must be
credited to the Gift Account for Veterans Homes. Any money remaining in the
Gift Account for Veterans Homes at the end of each fiscal year does not lapse
to the State General Fund, but must be carried forward into the next fiscal
year.

8. The
Executive Director shall, on or before August 1 of each year, prepare and
submit to the Interim Finance Committee a report detailing the expenditures
made from the Gift Account for Veterans Homes that are attributable to the
money deposited in that account pursuant to subsection 2 of NRS 482.3764.

Sec. 8. NRS 482.3764 is hereby amended to read as
follows:

482.3764 1. Before the Department issues to any
person, pursuant to NRS 482.3763:

(1) Collect a special fee for a veterans home
in the amount of $25; and

(2) Affix a decal to each plate if requested by
an applicant who meets the requirements set forth in NRS 482.37635.

(b) An annual renewal sticker, it shall:

(1) Collect a special fee for a veterans home
in the amount of $20; and

(2) Affix a decal to each plate if requested by
an applicant who meets the requirements set forth in NRS 482.37635.

2. The Department shall deposit [any money]the first $100,000 collected
pursuant to this section each year
with the State Treasurer for credit to the [Veterans Home Account.]Gift Account for Veterans Homes, established by subsection
7 of NRS 417.145. Thereafter, any additional amount collected pursuant to this
section during the year must be deposited in the State General Fund.

Sec. 9. 1. Except as otherwise provided in
subsection 2, for the period beginning on June 1, 2003, and ending on July 1,
2004, the Transportation Services Authority shall not accept the submission or
filing of any application for the modification of a certificate of public
convenience and necessity issued to a fully regulated carrier of passengers for
the operation of a livery or traditional limousine if the application for
modification is to increase the number of limousines to be operated pursuant to
the certificate of public convenience and necessity in a county whose population
is 400,000 or more.

2. The Transportation Services Authority:

(a) Shall first publicly notice and then process, in the
order in which it was received, each application for any new or modified
certificate of public convenience and necessity that is received by the
Authority before June 1, 2003.

(b) Except as otherwise provided in this paragraph, during
the period beginning on June 1, 2003, and ending on July 1, 2004, shall accept
the submission and filing of applications for a new certificate of public
convenience and necessity for the operation of a livery or traditional
limousine in a county whose population is 400,000 or more. Applications
submitted and filed as described in this paragraph must be processed in the
ordinary course of business and without undue delay. The Authority shall not,
during that period:

(1) Accept the submission and filing of more than one
application by any one applicant.

(2) Approve the operation of more than two livery or
traditional limousines per each such application.

3. An unlimited certificate of public convenience and
necessity for the operation of a livery or traditional limousine issued to a
fully regulated carrier of passengers by the Transportation Services Authority
is void and revoked for the period from June 1, 2003, to July 1, 2004, to the
extent that the carrier has not, before June 1, 2003, registered in this state
each authorized limousine covered by the certificate of public convenience and
necessity.

4. As used in this section:

(a) Fully regulated carrier has the meaning ascribed to it
in NRS 706.072.

(b) Livery limousine means a motor vehicle that is engaged
in the general transportation of persons for compensation and not operated on a
regular schedule or over regular routes and:

(1) Was a light truck, as that term is defined in 49
C.F.R. § 523.5, at the time of its manufacture; or

(2) Was originally manufactured as having a capacity
of 9 or more persons but less than 16 persons, including the driver.

The term does not include a limousine for which the operator is
not required to obtain a certificate of public convenience and necessity from
the Transportation Services Authority.

(c) Traditional limousine means a motor vehicle that is
engaged in the general transportation of persons for compensation and not
operated on a regular schedule or over regular routes and:

(1) Was a passenger automobile, as that term is
defined in 49 C.F.R. § 523.4, at the time of its manufacture and was later
modified to increase its length; or

(2) Has a capacity of less than nine persons,
including the driver.

Sec. 10. 1. The Legislative Commission shall direct
a study of issues relating to the allocation of limousines.

2. The study must consider:

(a) Whether an allocation system is appropriate for the
issuance of certificates of public convenience and necessity for limousines
operated in a county whose population is 400,000 or more;

(b) Whether the budgetary needs of the Transportation
Services Authority are being met at a level that will ensure optimum regulation
of limousines, combined with an assessment of the probable effect on operators
of any additional regulatory fees; and

(c) Such other issues regarding the regulation of limousines
as the Commission deems appropriate.

3. The Commission may apply for any available grants and
accept gifts, grants or donations to assist the Commission in conducting the
study.

4. The Commission may contract with or enter into an
agreement with a public or private agency that has the experience necessary to
conduct a study of the type described in subsection 2.

5. The Commission shall, on or before April 30, 2004,
submit the final results of the study to the Transportation Services Authority.
The Commission shall submit a report of the results of the study and any
recommendations for legislation to the 73rd Session of the Nevada Legislature.

Sec. 11. 1. On or before May 28, 2004, the
Legislative Commission shall, based upon information gathered during the study
described in section 10 of this act, provide to the Transportation Services
Authority the recommendation of the Commission as to whether the Authority
should establish by regulation a system of allocations for limousines.

2. The Authority shall consider the recommendation of the
Commission and if the Authority determines, based upon information gathered
during the study, that it would be advisable to establish a system of
allocations for limousines, the Authority may, except as otherwise provided in
subsection 3, adopt regulations in accordance with chapter 233B of NRS
establishing a system of allocations for limousines. If established, such a
system must set forth the number of limousines that may be operated by a person
who holds a certificate of public convenience and
necessity for the operation of a livery or traditional limousine, as
applicable.

certificate of public convenience and necessity for the operation
of a livery or traditional limousine, as applicable.

3. On or before June 15, 2004, the Authority shall publicly
announce whether it will establish by regulation a system of allocations for
limousines.

4. As used in this section:

(a) Livery limousine has the meaning ascribed to it in
section 9 of this act.

(b) Traditional limousine has the meaning ascribed to it
in section 9 of this act.

Sec. 12. The provisions of this act do not limit,
prohibit, restrict or otherwise affect the consideration of or processing of
any application for:

1. A new certificate of public convenience and necessity;
or

2. The modification of a certificate of public convenience
and necessity,

that is filed with or submitted to the Transportation Services
Authority before June 1, 2003.

Sec. 13. 1. This section, sections 1 to 6,
inclusive, and 9 to 12, inclusive, of this act become effective upon passage
and approval.

2. Sections 7 and 8 of this act become effective on July 1,
2005.

________

CHAPTER 489, SB 59

Senate Bill No. 59Senator Rhoads

CHAPTER 489

AN ACT relating to
education; revising provisions governing approval by the Superintendent of
Public Instruction for the board of trustees of a school district to provide a
program of instruction based on an alternative schedule; requiring certain
reports regarding alternative schedules to be prepared by the boards of
trustees of certain school districts and the Superintendent of Public
Instruction; and providing other matters properly relating thereto.

[Approved: June 11, 2003]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1.NRS 387.123 is hereby amended to
read as follows:

387.123 1. The count of pupils for apportionment
purposes includes all pupils who are enrolled in programs of instruction of the
school district, including, without limitation, a program of distance education
provided by the school district, or pupils who reside in the county in which
the school district is located and are enrolled in any charter school,
including, without limitation, a program of distance education provided by a
charter school, for:

(a) Pupils in the kindergarten department.

(b) Pupils in grades 1 to 12, inclusive.

(c) Pupils not included under paragraph (a) or (b) who
are receiving special education pursuant to the provisions of NRS 388.440 to
388.520, inclusive.

(d) Pupils who reside in the county and are enrolled
part time in a program of distance education if an agreement is filed with the Superintendent of Public Instruction pursuant to NRS 388.854 or
388.858, as applicable.

(f) Pupils who are enrolled in classes pursuant to
subsection 4 of NRS 386.560 and pupils who are enrolled in classes pursuant to
subsection 4 of NRS 386.580.

(g) Pupils who are enrolled in classes pursuant to
subsection 3 of NRS 392.070.

(h) Pupils who are enrolled in classes and taking
courses necessary to receive a high school diploma, excluding those pupils who
are included in paragraphs (d), (f) and (g).

2. The State Board shall establish uniform regulations
for counting enrollment and calculating the average daily attendance of pupils.
In establishing such regulations for the public schools, the State Board:

(a) Shall divide the school year into 10 school months,
each containing 20 or fewer school days[.] , or its equivalent for those public
schools operating under an alternative schedule authorized pursuant to NRS
388.090.

(b) May divide the pupils in grades 1 to 12, inclusive,
into categories composed respectively of those enrolled in elementary schools
and those enrolled in secondary schools.

(c) Shall prohibit the counting of any pupil specified
in subsection 1 more than once.

3. Except as otherwise provided in subsection 4 and
NRS 388.700, the State Board shall establish by regulation the maximum
pupil-teacher ratio in each grade, and for each subject matter wherever
different subjects are taught in separate classes, for each school district of
this state which is consistent with:

(a) The maintenance of an acceptable standard of
instruction;

(b) The conditions prevailing in the school district
with respect to the number and distribution of pupils in each grade; and

(c) Methods of instruction used, which may include
educational television, team teaching or new teaching systems or techniques.

If the Superintendent of Public Instruction finds that any
school district is maintaining one or more classes whose pupil-teacher ratio
exceeds the applicable maximum, and unless he finds that the board of trustees
of the school district has made every reasonable effort in good faith to comply
with the applicable standard, he shall, with the approval of the State Board,
reduce the count of pupils for apportionment purposes by the percentage which
the number of pupils attending those classes is of the total number of pupils
in the district, and the State Board may direct him to withhold the quarterly
apportionment entirely.

4. The provisions of subsection 3 do not apply to a charter
school or a program of distance education provided pursuant to NRS 388.820 to
388.874, inclusive.

Sec. 2. NRS 388.090 is hereby amended to read
as follows:

388.090 1. Except as otherwise [permitted pursuant to]provided in this
section, boards of trustees of school districts shall schedule and provide a
minimum of 180 days of free school in the districts under their charge.

2. Except
for an alternative schedule described in subsection 3, the Superintendent of
Public Instruction may, upon application by the board of trustees of a school
district, authorize the school district to provide a program of instruction
based on an alternative schedule if the number of minutes of instruction to be
provided is equal to or greater than the number of minutes of instruction that
would be provided in a program of instruction consisting of 180 school days.
The Superintendent of Public Instruction shall notify the board of trustees of
the school district of the approval or denial of the application not later than
30 days after the Superintendent of Public Instruction receives the
application. An alternative schedule proposed pursuant to this subsection must
be developed in accordance with chapter 288 of NRS. If a school district is
located in a county whose population is 100,000 or more, the school district
may not submit an application pursuant to this subsection unless the proposed
alternative schedule of the school district will apply only to a rural portion
or a remote portion of the county in which the school district is located, as
defined by the State Board pursuant to subsection 8.

3.
The Superintendent of Public Instruction may, upon application by [a]theboard of
trustees [,]of a school district, authorize a reduction of
not more than 15 school days in [a]that particular district to establish or
maintain an alternative schedule consisting
of a 12-month school program [or a program involving
alternative scheduling,] if the board of trustees
demonstrates that the proposed alternative
schedule for the program provides for a [greater]
number of minutes of instruction that
is equal to or greaterthan that whichwould be provided under a
program consisting of 180 school days. Before authorizing a reduction in the
number of required school days pursuant to this subsection, the Superintendent
of Public Instruction must find that the proposed alternative schedule will be used to alleviate
problems associated with a growth in enrollment or overcrowding .[, or to establish and
maintain a program of alternative schooling, including, without limitation, a
program of distance education provided by the board of trustees pursuant to NRS
388.820 to 388.874, inclusive.

3.]4.The
Superintendent of Public Instruction may, upon application by a board of
trustees, authorize the addition of minutes of instruction to any scheduled day
of free school if days of free school are lost because of any interscholastic
activity. Not more than 5 days of free school so lost may be rescheduled in
this manner.

[4.]The provisions of this subsection do not apply to an
alternative schedule approved pursuant to subsection 2.

5. The
number of minutes of instruction required for a particular group of pupils in a
program of instruction based on an alternative schedule approved pursuant to
this section must be determined by multiplying the appropriate minimum daily
period of instruction established by the State Board by regulation for that particular
group of pupils by 180.

6.
Each school district shall schedule at least 3 contingent days of school , or its equivalent if the school
district operates under an alternative schedule authorized pursuant to this
section, in addition to the number of days required by this
section, which must be used if a natural disaster, inclement weather or an
accident necessitates the closing of a majority of the facilities within the
district.

[5.]7. If more than 3 days of free school , or its equivalent if the school
district operates under an alternative schedule authorized pursuant to this
section, are lost because a natural disaster, inclement weather
or an accident necessitates the closing of a majority of the facilities within
a school district, the Superintendent of Public Instruction, upon application
by the school district, may permit the additional days lost to be counted as
school days in session. The application must be submitted in the manner
prescribed by the Superintendent of Public Instruction.

[6.]8. The State Board shall adopt regulations [providing]:

(a) Providing
procedures for changing schedules of instruction to be used if a
natural disaster, inclement weather or an accident necessitates the closing of
a particular school within a school district.

(b) Defining a
rural portion of a county and a remote portion of a county for the purposes of
subsection 2.

Sec. 3. NRS 391.3115 is hereby amended to
read as follows:

391.3115 1. The demotion, suspension, dismissal and
nonreemployment provisions of NRS 391.311 to 391.3197, inclusive, do not apply
to:

(a) Substitute teachers; or

(b) Adult education teachers.

2. A licensed employee who is employed in a position fully
funded by a federal or private categorical grant or to replace another licensed
employee during that employees leave of absence is employed only for the
duration of the grant or leave. Such a licensed employee and licensed employees
who are employed on temporary contracts for 90 school days or less , or its equivalent in a school district
operating under an alternative schedule authorized pursuant to NRS 388.090, to
replace licensed employees whose employment has terminated after the beginning
of the school year are entitled to credit for that time in fulfilling any
period of probation and during that time the provisions of NRS 391.311 to
391.3197, inclusive, for demotion, suspension or dismissal apply to them.

Sec. 4. NRS 392.019 is hereby amended to read
as follows:

392.019 1. Except as otherwise provided in this
subsection, if a child is exempt from compulsory attendance pursuant to NRS
392.070, 392.100 or 392.110, and the child is employed to work in the
entertainment industry pursuant to a written contract for a period of more than
91 school days, or its equivalent
if the child resides in a school district operating under an alternative
schedule authorized pursuant to NRS 388.090, including, without
limitation, employment with a motion picture company or employment with a
production company hired by a casino or resort hotel, the entity that employs
the child shall, upon the request of the parent or legal guardian of the child,
pay the costs for the child to receive at least 3 hours of tutoring per day for
at least 5 days per week. In lieu of tutoring, the parent or legal guardian of
such a child may agree with the entity that employs the child that the entity
will pay the costs for the child to receive other educational or instructional
services which are equivalent to tutoring. The provisions of this subsection
apply during the period of a childs employment with an entity, regardless of
whether the child has obtained the appropriate exemption from compulsory
attendance at the time his contract with the entity is under negotiation.

2. If such a child is exempt from compulsory attendance
pursuant to NRS 392.100 or 392.110, the tutoring or other educational or
instructional services received by the child pursuant to
subsection 1 must be approved by the board of trustees of the school district
in which the child resides.

services received by the child pursuant to subsection 1 must be
approved by the board of trustees of the school district in which the child
resides.

Sec. 5. NRS 392.435 is hereby amended to read
as follows:

392.435 1. Unless excused because of religious belief
or medical condition, a child may not be enrolled in a public school within
this state unless his parents or guardian submit to the board of trustees of
the school district in which the child resides or the governing body of the
charter school in which the child has been accepted for enrollment a
certificate stating that the child has been immunized and has received proper
boosters for that immunization or is complying with the schedules established
by regulation pursuant to NRS 439.550 for the following diseases:

(a) Diphtheria;

(b) Tetanus;

(c) Pertussis if the child is under 6 years of age;

(d) Poliomyelitis;

(e) Rubella;

(f) Rubeola; and

(g) Such other diseases as the local board of health or
the State Board of Health may determine.

2. The certificate must show that the required
vaccines and boosters were given and must bear the signature of a licensed
physician or his designee or a registered nurse or his designee, attesting that
the certificate accurately reflects the childs record of immunization.

3. If the requirements of subsection 1 can be met with
one visit to a physician or clinic, procedures for conditional enrollment do
not apply.

4. A child may enter school conditionally if the
parent or guardian submits a certificate from a physician or local health
officer that the child is receiving the required immunizations. If a
certificate from the physician or local health officer showing that the child
has been fully immunized is not submitted to the appropriate school officers
within 90 school days , or its
equivalent in a school district operating under an alternative schedule
authorized pursuant to NRS 388.090, after the child was
conditionally admitted, the child must be excluded from school and may not be
readmitted until the requirements for immunization have been met. A child who
is excluded from school pursuant to this section is a neglected child for the
purposes of NRS 432.100 to 432.130, inclusive, and chapter 432B of NRS.

5. Before December 31 of each year, each school
district and the governing body of each charter school shall report to the
Health Division of the Department of Human Resources, on a form furnished by
the Division, the exact number of pupils who have completed the immunizations
required by this section.

6. The certificate of immunization must be included in the
pupils academic or cumulative record and transferred as part of that record
upon request.

Sec. 6. NRS 62.224 is hereby amended to read
as follows:

62.224 1. In addition to any other action authorized
pursuant to the provisions of this chapter, if a child is found to be in need
of supervision because he is a habitual truant, the court shall:

(a) The first time the child is found to be in need of
supervision because he is a habitual truant:

(I) Pay a fine of not more than $100
pursuant to paragraph (l) of subsection 1 of NRS 62.211 and the administrative
assessment required by NRS 62.2175; or

(II) Perform not less than 8 hours but not
more than 16 hours of community service in compliance with the provisions of
subsection 3; and

(2) If the child is 14 years of age or older,
order the suspension of the childs drivers license for at least 30 days but
not more than 6 months. If the child does not possess a drivers license, the
court shall prohibit the child from applying for a drivers license for 30
days:

(I) Immediately following the date of the
order if the child is eligible to apply for a drivers license; or

(II) After the date he becomes eligible to
apply for a drivers license if the child is not eligible to apply for a
drivers license.

(b) The second or any subsequent time the child is
found to be in need of supervision because he is a habitual truant:

(1) Order the child to:

(I) Pay a fine of not more than $200
pursuant to paragraph (l) of subsection 1 of NRS 62.211 and the administrative
assessment required by NRS 62.2175;

(II) Perform not more than 10 hours of
community service in compliance with the provisions of subsection 3; or

(III) Comply with the requirements set
forth in both sub‑subparagraphs (I) and (II); and

(2) If the child is 14 years of age or older,
order the suspension of the childs drivers license for at least 60 days but
not more than 1 year. If the child does not possess a drivers license, the
court shall prohibit the child from applying for a drivers license for 60
days:

(I) Immediately following the date of the
order if the child is eligible to apply for a drivers license; or

(II) After the date he becomes eligible to
apply for a drivers license if the child is not eligible to apply for a
drivers license.

2. The court may suspend the payment of a fine ordered
pursuant to paragraph (a) of subsection 1 if the child attends school for 60
consecutive school days , or its
equivalent in a school district operating under an alternative schedule
authorized pursuant to NRS 388.090, after the imposition of the
fine, or has a valid excuse acceptable to his teacher or the principal for any
absence from school within that period.

3. The community service ordered pursuant to paragraph
(a) or (b) of subsection 1 must be performed:

(a) For and under the supervising authority of a
county, city, town or other political subdivision or agency of this state or a
charitable organization that renders service to the community or its residents;
and

(b) At the childs school of attendance, if
practicable.

4. If the court issues an order suspending a childs
drivers license pursuant to subsection 1, the court shall require the child to
surrender to the court all drivers licenses then held by the child.

Sec. 7. 1.If the board of trustees of
a school district provides a program of instruction based upon an alternative
schedule pursuant to subsection 2 of section 2 of this act, the board of trustees
shall, on or before December 31, 2004, submit a written report to the
Superintendent of Public Instruction. The report must include:

(b) An evaluation of the effect of the alternative
schedule on the pupils, parents and legal guardians and community.

2. The Superintendent of Public Instruction shall:

(a) Compile the reports, if any, submitted pursuant to
subsection 1; and

(b) On or before February 1, 2005, submit a written report
of the compilation to the Director of the Legislative Counsel Bureau for
transmission to the 73rd Session of the Nevada Legislature.

Sec. 8. This act becomes effective on July 1, 2003.

________

CHAPTER 490, SB 144

Senate Bill No. 144Committee on Government Affairs

CHAPTER 490

AN ACT relating to
the Division of State Parks of the State Department of Conservation and Natural
Resources; authorizing, under certain circumstances, the Administrator of the
Division to charge and collect a fee for administering certain federal grants
for the planning, acquisition or development of outdoor recreational projects;
requiring the Legislature to approve any change to the name of a state park,
monument or recreational area; requiring the Administrator of the Division to
provide an annual permit to enter all state parks and recreational areas;
authorizing the Division to enter into cooperative agreements with certain
political subdivisions of this state to establish and maintain certain parks;
providing for the allocation of certain bonds proceeds for historic restoration
projects in Virginia City and Lincoln County; and providing other matters properly
relating thereto.

[Approved: June 11, 2003]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1.Chapter 407 of NRS is hereby
amended by adding thereto the provisions set forth as sections 2 and 3 of this
act.

Sec. 2. 1.
The Administrator, subject to the approval of the Director, may charge and
collect from each grant recipient a fee for administering the federal grants
provided to the State of Nevada and its political subdivisions for the
planning, acquisition or development of outdoor recreational projects pursuant
to the Land and Water Conservation Fund established by 16 U.S.C. § 460l-5 to the
extent that such a fee does not violate the terms of such a federal grant.

2. If a fee is
charged pursuant to subsection 1:

(a) The fee
must by charged only once annually.

(b) The total
of all fees collected annually pursuant to subsection 1 must not exceed an
amount equal to the annual salary of a half-time position the duty of which is
to administer the federal grants.

3. Notwithstanding
any other specific provision to the contrary, if a fee is charged to the
Division pursuant to subsection 1, the fee may be paid from money received by
the Division for the planning, acquisition or development of outdoor recreational projects regardless of the
source of the money to the extent that such payment of the fee does not violate
the terms of any federal grant awarded to the State of Nevada.

development of
outdoor recreational projects regardless of the source of the money to the
extent that such payment of the fee does not violate the terms of any federal
grant awarded to the State of Nevada.

Sec. 3. 1.
Any money the Administrator receives pursuant to section 2 of this act:

(a) Must
be deposited in the State Treasury and accounted for separately in the State
General Fund;

(b) Does
not revert to the State General Fund at the end of any fiscal year; and

(c) May be used
by the Administrator only to pay the costs of administering the federal grants
provided for the planning, acquisition or development of outdoor recreational
projects pursuant to the Land and Water Conservation Fund established by 16
U.S.C. § 460l-5. The costs of administering those federal grants include,
without limitation, costs for the salary, travel expenses and per diem
allowances of the person whose duty is to administer the federal grants.

2. Any
interest or income earned on the money in the account, after deducting
applicable charges, must be credited to the account. Any claims against the
account must be paid in the manner that other claims against the State are
paid.

Sec. 4. NRS 407.065 is
hereby amended to read as follows:

407.065 1. The
Administrator, subject to the approval of the Director:

(a) [May]Except as otherwise provided in
this paragraph, may establish, name, plan, operate, control,
protect, develop and maintain state parks, monuments and recreational areas for
the use of the general public. The
name of an existing state park, monument or recreational area may not be
changed unless the Legislature approves the change by statute.

(b) Shall protect state
parks and property controlled or administered by the Division from misuse or
damage and preserve the peace within those areas. The Administrator may appoint
or designate certain employees of the Division to have the general authority of
peace officers.

(c) May allow multiple use
of state parks and real property controlled or administered by the Division for
any lawful purpose, including, but not limited to, grazing, mining, development
of natural resources, hunting and fishing, in accordance with such regulations
as may be adopted in furtherance of the purposes of the Division.

(d) Shall impose and
collect reasonable fees for entering, camping and boating in state parks and
recreational areas. The Division shall issue, upon application therefor and
proof of residency and age, an annual permit for entering, camping and boating
in all state parks and recreational areas in this state to any person who is 65
years of age or older and has resided in this state for at least 5 years
immediately preceding the date on which the application is submitted. The
permit must be issued without charge, except that the Division shall charge and
collect an administrative fee for the issuance of the permit in an amount
sufficient to cover the costs of issuing the permit.

(e) May conduct and operate
such special services as may be necessary for the comfort and convenience of
the general public, and impose and collect reasonable fees for such special
services.

(f) May rent or lease
concessions located within the boundaries of state parks or of real property
controlled or administered by the Division to public or private corporations,
to groups of natural persons, or to natural persons for a
valuable consideration upon such terms and conditions as the Division deems fit
and proper, but no concessionaire may dominate any state park operation.

a valuable consideration upon
such terms and conditions as the Division deems fit and proper, but no
concessionaire may dominate any state park operation. Rental and lease payments
must be deposited in the State General Fund.

(g) May establish such
capital projects construction funds as are necessary to account for the parks
improvements program approved by the Legislature. The money in these funds must
be used for the construction and improvement of those parks which are under the
supervision of the Administrator.

2. The Administrator:

(a) Shall issue an annual permit to a person who pays
a reasonable fee as prescribed by regulation which authorizes the holder of the
permit to enter each state park and each recreational area in this state and,
except as otherwise provided in subsection 3, use the facilities of the state
park or recreational area without paying the entrance fee; and

(b) May issue an annual permit to a person who pays a
reasonable fee as prescribed by regulation which authorizes the holder of the
permit to enter a specific state park or specific recreational area in this
state and, except as otherwise provided in subsection 3, use the facilities of
the state park or recreational area without paying the entrance fee.

3. An annual permit issued pursuant to subsection 2
does not authorize the holder of the permit to engage in camping or boating, or
to attend special events. The holder of such a permit who wishes to engage in
camping or boating, or to attend special events, must pay any fee established
for the respective activity.

4. Except
as otherwise provided in subsection 1 of NRS 407.0762 and subsection 1 of NRS
407.0765, the fees collected pursuant to paragraphs (d) and (e) of subsection 1
or subsection 2 must
be deposited in the State General Fund.

Sec. 5. NRS 407.068 is hereby amended to read
as follows:

407.068 1. As used in this section:

(a) Controlling subdivision means any political
subdivision of this state, including irrigation, water conservancy and other
districts, which owns or controls a site suited to a public park.

(b) Other state agency means any other agency of this
state which owns or controls a site suited to a public park or is engaged in
park and recreation development.

(c) Park includes any recreational facility.

(d) Using subdivision means any political subdivision
of this state which is authorized to establish and maintain public parks.

2. The Administrator, subject to the approval of the
Director, may enter into cooperative agreements for the operation of parks, not
a part of the Division but which are of state park caliber, with any other
state agency, controlling subdivision
or using subdivision, for the primary purpose of establishing or
maintaining a park where:

(a) A controlling subdivision is not authorized to
establish or maintain parks; or

(b) A using subdivision would be subjected to an unfair
financial burden through extensive use of the park by nonresidents of the using
subdivision.

The agreement may include any other using subdivision whose
residents may be expected to make substantial use of the park.

4. The Division shall apportion the cost of operation,
or the combined state and local shares of the cost if federal funds are also
received, as follows:

(a) As between the State and the using subdivision or
subdivisions, on the basis of the number of persons residing outside the using
subdivisions, as against the number of residents of such subdivisions, who are
estimated or anticipated by the Division to use the park.

(b) As between two or more using subdivisions, on the
basis of the number of residents of each so estimated or anticipated to use the
park.

5. In
addition to the cooperative agreements authorized pursuant to subsection 2, the
Administrator, subject to the approval of the Director, may enter into a
cooperative agreement with a using subdivision for the purpose of establishing
and maintaining a park that:

(a) Is
under the jurisdiction of the Division; and

(b) Will
be used primarily by residents of the using subdivision.

Sec. 6. NRS 407.0762 is
hereby amended to read as follows:

407.0762 1. The Account
for Maintenance of State Parks within the Division of State Parks is hereby
created in the State General Fund. Except as otherwise provided in NRS
407.0765, any amount of fees collected pursuant to paragraphs (d) and (e) of
subsection 1 or subsection 2 of
NRS 407.065 in a calendar year, which is in excess of the amounts authorized
for expenditure from that revenue source in the Divisions budget for the
fiscal year beginning in that calendar year, must be deposited in the Account.
The interest and income earned on the money in the Account, after deducting any
applicable charges, must be credited to the Account.

2. The money in the
Account does not lapse to the State General Fund at the end of any fiscal year.

3. The money deposited in
the Account pursuant to subsection 1 must only be used to repair and maintain
state parks, monuments and recreational areas.

4. Before the
Administrator may expend money pursuant to subsection 3:

(a) For emergency repairs and projects with a cost of less
than $25,000, he must first receive the approval of the Director.

(b) For projects with a cost of $25,000 or more, other than
emergency repairs, he must first receive the approval of the Director and of
the Interim Finance Committee.

Sec. 7. NRS 407.209 is hereby amended to read
as follows:

407.209 The Administrator, subject to the approval of
the director, shall make no commitment, nor shall he enter into any agreement
pursuant to NRS 407.205 [to 407.209, inclusive,], 407.207 and 407.209 and sections 2 and
3 of this act until he has determined that sufficient funds are
available to the Division for meeting the States share, if any, of project
costs. It is the legislative intent that, to such extent as may be necessary to
assure the proper operation and maintenance of areas and facilities acquired or
developed pursuant to any program participated in by this state under NRS
407.205 [to 407.209, inclusive,], 407.207 and 407.209 and sections 2 and
3 of this act such areas and facilities [shall]must be publicly
maintained for outdoor recreation purposes. The Administrator, subject to the
approval of the Director, may enter into and administer
agreements with the United States or any appropriate agency thereof for
planning, acquisition and development projects involving participating federal
aid funds on behalf of any political subdivision or subdivisions of this state
if such subdivision or subdivisions give necessary assurances to the Division
that they have available sufficient funds to meet their shares, if any, of the
cost of the project and that the acquired or developed areas will be operated
and maintained at the expense of such subdivision or subdivisions for public
outdoor recreation use.

Director, may enter into and administer agreements with the
United States or any appropriate agency thereof for planning, acquisition and
development projects involving participating federal aid funds on behalf of any
political subdivision or subdivisions of this state if such subdivision or subdivisions
give necessary assurances to the Division that they have available sufficient
funds to meet their shares, if any, of the cost of the project and that the
acquired or developed areas will be operated and maintained at the expense of
such subdivision or subdivisions for public outdoor recreation use.

Sec. 8. Notwithstanding the provisions of
chapter 6, Statutes of Nevada 2001, Special Session, from the $20,000,000 in
general obligation bonds allocated to the State Department of Conservation and
Natural Resources to be administered by the Division of State Lands pursuant to
subparagraph (5) of paragraph (a) of subsection 7 of section 2 of that act:

1. The sum of $150,000 must be allocated to Virginia
City for distribution to the Comstock Cemetery Foundation for restoration of
historic Virginia City cemetery if a commitment for at least a 100 percent
matching amount of money from one or more federal grants is obtained for the
cost of the restoration project. This allocation must be made from the first bonds
sold pursuant to chapter 6 of Statutes of Nevada 2001, Special Session.

2. The sum of $136,000 must be allocated to Lincoln County
for the restoration of the historic fairgrounds in Panaca, Nevada, if a
commitment is received from Lincoln County to match the allocated money through
the provision of all labor for the restoration project. This allocation must be
made from the second group of bonds sold pursuant to chapter 6 of Statutes of
Nevada 2001, Special Session.

Sec. 9. This act becomes effective upon passage and
approval.

________

κ2003
Statutes of Nevada, Page 3225κ

CHAPTER 491, AB 493

Assembly Bill No. 493Committee on Commerce and Labor

CHAPTER 491

AN ACT relating to
state financial administration; providing that certain money collected by the
Commissioner of Financial Institutions and the Division of Financial
Institutions of the Department of Business and Industry must be deposited in
the State Treasury and accounted for separately in the State General Fund;
providing that the money deposited in the State Treasury by the Commissioner
and the Division and accounted for separately in the State General Fund must be
used to carry out the programs and pay for the expenses of the Commissioner and
the Division; providing that the Commissioner shall collect an assessment from
certain financial institutions for the purpose of recovering the cost to the
Commissioner for legal services provided by the Attorney General to the
Commissioner and the Division; and providing other matters properly relating
thereto.

[Approved: June 11, 2003]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1.Chapter 658 of NRS is hereby
amended by adding thereto the provisions set forth as sections 2 and 3 of this
act.

Sec. 2. 1. Except as otherwise provided by law,
any money appropriated to the Commissioner or the Division and any money
collected by the Commissioner or Division pursuant to law:

(a) Must be deposited in the State Treasury and
accounted for separately in the State General Fund; and

(b) May only be used to:

(1) Carry out the programs and laws
administered by the Commissioner and the Division; and

(2) Pay the expenses related to the operations
of the Commissioner and the Division.

2. Except as otherwise provided by law, any money
that remains in the account at the end of the fiscal year, does not revert to
the State General Fund, and the balance of the account must be carried forward
to the next fiscal year.

3. The
Commissioner shall administer the account. Any interest or income earned on the
money in the account must be credited to the account, after deducting any
applicable charges. Any claims against the account must be paid as other claims
against the State are paid.

Sec. 3. 1.
On a quarterly or other regular basis, the Commissioner shall collect an
assessment pursuant to this section from each:

(a) Check-cashing
service or deferred deposit service that is supervised pursuant to chapter 604
of NRS;

(b) Escrow
agent that is supervised pursuant to chapter 645A of NRS;

(c) Mortgage
broker that is supervised pursuant to chapter 645B of NRS;

(d) Mortgage
company that is supervised pursuant to chapter 645E of NRS;

(e) Collection
agency that is supervised pursuant to chapter 649 of NRS;

(f) Bank that
is supervised pursuant to chapters 657 to 668, inclusive, of NRS;

(g) Trust
company that is supervised pursuant to chapter 669 of NRS;

(h) Development
corporation that is supervised pursuant to chapter 670 of NRS;

(i) Corporation
for economic revitalization and diversification that is supervised pursuant to
chapter 670A of NRS;

(j) Person
engaged in the business of selling or issuing checks or of receiving for
transmission or transmitting money or credits that is supervised pursuant to
chapter 671 of NRS;

(k) Savings and
loan association that is supervised pursuant to chapter 673 of NRS;

(l) Person
engaged in the business of lending that is supervised pursuant to chapter 675
of NRS;

(m) Person
engaged in the business of debt adjusting that is supervised pursuant to
chapter 676 of NRS;

(n) Thrift
company that is supervised pursuant to chapter 677 of NRS; and

(o) Credit
union that is supervised pursuant to chapter 678 of NRS.

2. The
Commissioner shall determine the total amount of all assessments to be
collected from the entities identified in subsection 1, but that amount must
not exceed the amount necessary to recover the cost of legal services provided
by the Attorney General to the Commissioner and to the Division. The total
amount of all assessments collected must be reduced by any amounts collected by
the Commissioner from an entity for the recovery of the costs of legal services
provided by the Attorney General in a specific case.

3. The
Commissioner shall collect from each entity identified in subsection 1 an
assessment that is based on:

(a) A portion
of the total amount of all assessments as determined pursuant to subsection 2,
such that the assessment collected from an entity identified in subsection 1
shall bear the same relation to the total amount of all assessments as the
total assets of that entity bear to the total of all assets of all entities
identified in subsection 1; or

(b) Any other
reasonable basis adopted by the Commissioner.

4. The
assessment required by this section is in addition to any other assessment, fee
or cost required by law to be paid by an entity identified in subsection 1.

5. Money
collected by the Commissioner pursuant to this section must be deposited in the
State Treasury pursuant to the provisions of section 2 of this act.

Sec. 4. (Deleted by amendment.)

Sec. 5. NRS 658.096 is hereby amended to read
as follows:

658.096 1. The Commissioner shall charge and collect
the following fees in connection with his official duties:

(a) For licensing of state banks:

(1) A fee of $200 for each parent bank, payable
on June 30 of each year.

(2) A fee of $100 for each branch bank or trust
office, payable on June 30 of each year.

The fees must accompany the application for renewal of the
license. A penalty of 10 percent of the fee must be charged for each month or part
of a month that the fees are not paid after June 30 of each year.

(b) For applications for new branch banks or trust
offices, a nonrefundable fee of $200 for the application and survey, to be paid
by the applicant at the time of making the application. The applicant must also
pay such additional expenses incurred in the process of investigation as the
Commissioner deems necessary. All money received by the Commissioner pursuant
to this paragraph must be placed in the Investigative Account created by NRS
232.545.

(c) For examinations and the examination of trust
departments of state banks or trust offices, a fee for conducting the
examination and for preparing and typing the report of the examination at the
rate established pursuant to NRS 658.101.

2. Except as otherwise provided in paragraph (b) of
subsection 1, all money collected pursuant to this section must be [paid
into]deposited
in the State [General Fund.]Treasury pursuant to the
provisions of section 2 of this act.

3. As used in this section, trust office has the
meaning ascribed to it in subsection 4 of NRS 662.239.

Sec. 6. NRS 658.145 is hereby amended to read
as follows:

658.145 1. The Commissioner may offer, under such
conditions as he may deem proper, rewards not to exceed the sum of $500 in any
one case for the arrest and conviction of any officer, director, agent or
employee of any bank charged with violating any of the laws of this state
relating to banks and banking for which a criminal penalty is provided, or for
the arrest and conviction of any person charged with stealing, with or without
force, any money, property or thing of value of any bank.

2. The [State Treasurer]Commissioner shall pay out of the money deposited to the State [General Fund]Treasury pursuant to the
provisions of section 2 of this act all such rewards .[when they are approved by
the State Board of Examiners in the usual manner for allowing other claims
against the State.]

Sec. 7. NRS 669.190 is hereby amended to read
as follows:

669.190 1. The initial fee to be paid for a trust
company license must be in proportion to the initial stockholders equity of
the trust company as follows:

(a) A trust company with an initial stockholders
equity of not less than $300,000 but not more than $500,000 must pay a license
fee of $500.

(b) A trust company with an initial stockholders
equity of more than $500,000 but not more than $1,000,000 must pay a license
fee of $750.

(c) A trust company with an initial stockholders
equity of more than $1,000,000 must pay a license fee of $1,000.

2. In addition, every trust company must pay an
initial license fee of $100 for each branch office that is authorized by the
Commissioner.

3. Thereafter, every trust company must pay annually
on or before April 1 of each year a license fee which must be in proportion to
its existing stockholders equity as follows:

(a) A trust company with an existing stockholders
equity of not less than $300,000 but not more than $500,000 must pay a license
fee of $500.

(b) A trust company with an existing stockholders
equity of more than $500,000 but not more than $1,000,000 must pay a license
fee of $750.

(c) A trust company with an existing stockholders
equity of more than $1,000,000 must pay a license fee of $1,000.

4. All money collected under the provisions of this
section must be [paid into]deposited in the State [General Fund and the
State Treasurer shall issue a receipt therefor.]Treasury pursuant to the provisions of
section 2 of this act.

Sec. 8. NRS 669.250 is hereby amended to read
as follows:

669.250 1. For each examination of a trust companys
books and records required or authorized under this chapter, the Commissioner
shall charge and collect from the trust company a fee for conducting the
examination and in preparing and typing the report of the examination at the
rate established pursuant to NRS 658.101.

2. All money collected under this section must be [paid
into]deposited
in the State [General Fund.]Treasury pursuant to the
provisions of section 2 of this act.

3. The Commissioner shall examine a licensee as often
as he deems necessary.

Sec. 9. NRS 670.310 is hereby amended to read
as follows:

670.310 Except as otherwise provided in NRS 670.115,
all money collected pursuant to the provisions of this chapter must be [paid
into]deposited
in the State [General Fund]Treasury pursuant to the provisions of section 2 of this
act.

Sec. 10. NRS 671.070 is hereby amended to
read as follows:

671.070 1. A license issued pursuant to this chapter expires
on June 30 of the year following its issuance and thereafter expires on June 30
of each year, unless it is earlier surrendered, suspended or revoked.

2. The license may be renewed from year to year upon
the approval of the Commissioner if the licensee files an application
conforming to the requirements for an initial application at least 60 days
before the expiration of his current license.

3. An application for the renewal of the license must
be accompanied by a fee of $200. No investigation fee may be charged for the
renewal of the license. If the application or fee for renewal is not filed
within the required time, the Commissioner may renew the expired license upon
receipt of the application and fee for renewal, and a fee of $200 for late renewal.

4. All fees collected pursuant to this section must be
deposited in the State Treasury [for credit to the State General Fund.]pursuant to the provisions of section 2
of this act.

Sec. 11. (Deleted by amendment.)

Sec. 12. NRS 645A.040 is hereby amended to
read as follows:

645A.040 1. Every license issued pursuant to the
provisions of this chapter expires on July 1 of each year if it is not renewed.
A license may be renewed by filing an application for renewal and paying the
annual fee for the succeeding year.

2. The fees for the issuance or renewal of a license
for an escrow agency are:

(a) For filing an application for an initial license,
$500 for the principal office and $100 for each branch office. All money
received by the Commissioner pursuant to this paragraph must be placed in the
Investigative Account created by NRS 232.545.

(b) If the license is approved for issuance, $200 for
the principal office and $100 for each branch office. The fee must be paid
before issuance of the license.

(c) For filing an application for renewal, $200 for the
principal office and $100 for each branch office.

3. The fees for the issuance or renewal of a license
for an escrow agent are:

(a) For filing an application for an initial license or
for the renewal of a license, $100.

(b) If a license is approved for issuance or renewal,
$25. The fee must be paid before the issuance or renewal of the license.

4. If a licensee fails to pay the fee for the annual
renewal of his license before its expiration, his license may be renewed only
upon the payment of a fee 1 1/2 times the amount otherwise required for
renewal. A license may be renewed pursuant to this subsection only if all the
fees are paid within 1 year after the date on which the license expired.

5. In addition to the other fees set forth in this
section, each applicant or licensee shall pay:

(a) For filing an application for a duplicate copy of
any license, upon satisfactory showing of its loss, $10.

(b) For filing any change of information contained in
the application, $10.

(c) For each change of association with an escrow
agency, $25.

6. Except as otherwise provided in this chapter, all
fees received pursuant to this chapter must be deposited in the State Treasury [for
credit to the State General Fund.]pursuant to the provisions of section 2 of this act.

Sec. 13. NRS 645B.050 is hereby amended to
read as follows:

645B.050 1. A license issued pursuant to this chapter
expires each year on June 30, unless it is renewed. To renew a license, the
licensee must submit to the Commissioner on or before June 30 of each year:

(a) An application for renewal;

(b) The fee required to renew the license pursuant to
this section; and

(c) The information required pursuant to NRS 645B.051.

2. If the licensee fails to submit any item required
pursuant to subsection 1 to the Commissioner on or before June 30 of any year,
the license is cancelled. The Commissioner may reinstate a cancelled license if
the licensee submits to the Commissioner:

(a) An application for renewal;

(b) The fee required to renew the license pursuant to
this section;

(c) The information required pursuant to NRS 645B.051;
and

(d) Except as otherwise provided in this section, a
reinstatement fee of $200.

3. Except as otherwise provided in NRS 645B.016, a
certificate of exemption issued pursuant to this chapter expires each year on
December 31, unless it is renewed. To renew a certificate of exemption, a
person must submit to the Commissioner on or before December 31 of each year:

(a) An application for renewal that includes
satisfactory proof that the person meets the requirements for an exemption from
the provisions of this chapter; and

(b) The fee required to renew the certificate of
exemption.

4. If the person fails to submit any item required
pursuant to subsection 3 to the Commissioner on or before December 31 of any
year, the certificate of exemption is cancelled.

of exemption is cancelled. Except as otherwise provided in
NRS 645B.016, the Commissioner may reinstate a cancelled certificate of
exemption if the person submits to the Commissioner:

(a) An application for renewal that includes
satisfactory proof that the person meets the requirements for an exemption from
the provisions of this chapter;

(b) The fee required to renew the certificate of
exemption; and

(c) Except as otherwise provided in this section, a
reinstatement fee of $100.

5. Except as otherwise provided in this section, a
person must pay the following fees to apply for, to be issued or to renew a
license as a mortgage broker pursuant to this chapter:

(a) To file an original application for a license,
$1,500 for the principal office and $40 for each branch office. The person must
also pay such additional expenses incurred in the process of investigation as
the Commissioner deems necessary. All money received by the Commissioner pursuant
to this paragraph must be placed in the Investigative Account created by NRS
232.545.

(b) To be issued a license, $1,000 for the principal
office and $60 for each branch office.

(c) To renew a license, $500 for the principal office
and $100 for each branch office.

6. Except as otherwise provided in this section, a
person must pay the following fees to apply for or to renew a certificate of
exemption pursuant to this chapter:

(a) To file an application for a certificate of
exemption, $200.

(b) To renew a certificate of exemption, $100.

7. To be issued a duplicate copy of any license or certificate
of exemption, a person must make a satisfactory showing of its loss and pay a
fee of $10.

8. Except as otherwise provided in this chapter, all
fees received pursuant to this chapter must be deposited in the State Treasury [for
credit to the State General Fund.]pursuant to the provisions of section 2 of this act.

9. The Commissioner may, by regulation, increase any
fee set forth in this section if the Commissioner determines that such an
increase is necessary for the Commissioner to carry out his duties pursuant to
this chapter. The amount of any increase in a fee pursuant to this subsection
must not exceed the amount determined to be necessary for the Commissioner to
carry out his duties pursuant to this chapter.

Sec. 14. NRS 645E.280 is hereby amended to
read as follows:

645E.280 1. A license issued to a mortgage company
pursuant to this chapter expires each year on December 31, unless it is
renewed. To renew a license, the licensee must submit to the Commissioner on or
before December 31 of each year:

(a) An application for renewal that complies with the
requirements of this chapter; and

(b) The fee required to renew the license pursuant to
this section.

2. If the licensee fails to submit any item required
pursuant to subsection 1 to the Commissioner on or before December 31 of any
year, the license is cancelled. The Commissioner may reinstate a cancelled
license if the licensee submits to the Commissioner:

(a) An application for renewal that complies with the
requirements of this chapter;

(b) The fee required to renew the license pursuant to
this section; and

(c) A reinstatement fee of $200.

3. Except as otherwise provided in NRS 645E.160, a
certificate of exemption issued pursuant to this chapter expires each year on
December 31, unless it is renewed. To renew a certificate of exemption, a
person must submit to the Commissioner on or before December 31 of each year:

(a) An application for renewal that complies with the
requirements of this chapter; and

(b) The fee required to renew the certificate of
exemption.

4. If the person fails to submit any item required
pursuant to subsection 3 to the Commissioner on or before December 31 of any
year, the certificate of exemption is cancelled. Except as otherwise provided
in NRS 645E.160, the Commissioner may reinstate a cancelled certificate of
exemption if the person submits to the Commissioner:

(a) An application for renewal that complies with the
requirements of this chapter;

(b) The fee required to renew the certificate of
exemption; and

(c) A reinstatement fee of $100.

5. A person must pay the following fees to apply for,
to be issued or to renew a license as a mortgage company pursuant to this
chapter:

(a) To file an original application for a license,
$1,500 for the principal office and $40 for each branch office. The person must
also pay such additional expenses incurred in the process of investigation as
the Commissioner deems necessary. All money received by the Commissioner
pursuant to this paragraph must be placed in the Investigative Account created
by NRS 232.545.

(b) To be issued a license, $1,000 for the principal
office and $60 for each branch office.

(c) To renew a license, $500 for the principal office
and $100 for each branch office.

6. A person must pay the following fees to apply for
or to renew a certificate of exemption pursuant to this chapter:

(a) To file an application for a certificate of
exemption, $200.

(b) To renew a certificate of exemption, $100.

7. To be issued a duplicate copy of any license or
certificate of exemption, a person must make a satisfactory showing of its loss
and pay a fee of $10.

8. Except as otherwise provided in this chapter, all
fees received pursuant to this chapter must be deposited in the State Treasury [for
credit to the State General Fund.]pursuant to the provisions of section 2 of this act.

Sec. 15. NRS 649.295 is hereby amended to
read as follows:

649.295 1. A nonrefundable fee of $250 for the
application and survey must accompany each new application for a license as a
collection agency. The applicant shall also pay such additional expenses
incurred in the process of investigation as the Commissioner deems necessary.
All money received by the Commissioner pursuant to this subsection must be
placed in the Investigative Account created by NRS 232.545.

2. A fee of not less than $100 nor more than $300,
prorated on the basis of the licensing year as provided by the Commissioner,
must be charged for each original license issued.

each original license issued. A fee of $200 must be charged
for each annual renewal of a license.

3. A fee of $10 must be charged for each duplicate
license or license for a transfer of location issued.

4. A nonrefundable investigation fee of $75 must
accompany each application for a managers certificate unless the applicant is
the holder of or an applicant for a license as a collection agency.

5. A fee of $20 must be charged for each managers
certificate issued and for each annual renewal of such a certificate.

6. A fee of $30 must be charged for the reinstatement
of a managers certificate.

7. A fee of $5 must be charged for each day an
application for the renewal of a license or certificate, or a required report,
is filed late, unless the fee or portion thereof is excused by the Commissioner
for good cause shown.

8. A nonrefundable fee of $125 for the application and
an examination must accompany each application for a permit to operate a branch
office of a licensed collection agency. A fee of $100 must be charged for each
annual renewal of such a permit.

9. For each examination the Commissioner shall charge
and collect from the licensee a fee for conducting the examination and preparing
and typing the report of the examination at the rate established pursuant to
NRS 658.101. Failure to pay the fee within 30 days after receipt of the bill is
a ground for revoking the collection agencys license.

10. Except as otherwise provided in subsection 1, all
money received by the Commissioner pursuant to this chapter must be deposited
in the State Treasury [for credit to the State General Fund.]pursuant to the provisions of section 2
of this act.

1. All fees, charges for expenses, assessments and
other money collected under the provisions of this chapter from foreign and
domestic associations, companies and corporations governed by this chapter must
be [paid into the State General Fund.]deposited in the State Treasury pursuant
to the provisions of section 2 of this act.

2. The compensation provided for by this chapter and
all expenses incurred under this chapter must be paid from the money deposited in the State
[General Fund.]Treasury pursuant to the provisions of section 2 of this
act.

Sec. 17. NRS 673.260 is hereby amended to
read as follows:

673.260 1. The license mentioned in NRS 673.250 authorizes
the company, association or corporation to whom it is issued to sell its
approved securities and contracts within this state for the remainder of the
fiscal year ending on June 30 next succeeding. Each license is renewable, under
like restrictions, annually thereafter.

2. For the issuing of any license provided for in NRS
673.250 and for any renewal thereof, the fee of the Commissioner is:

(a) For each home office, $200.

(b) For each branch office, $100.

3. The fees must accompany the license renewal
application. A penalty of 10 percent of the fee payable must be charged for
each month or part thereof that the fees are not paid after June 30 of each
year.

4. All sums so received by the Commissioner must be [forthwith
delivered to the State Treasurer and must be paid into]deposited in the State [General
Fund.]Treasury
pursuant to the provisions of section 2 of this act.

Sec. 18. NRS 673.270 is hereby amended to
read as follows:

673.270 1. No person may, as a soliciting agent,
soliciting representative or employee of any foreign or domestic company,
association or corporation, or in any other capacity, sell or solicit sales for
any securities such as investment certificates or savings accounts or contract
for the sale of securities until he is first licensed as a salesman or
solicitor for sales of those securities by the Commissioner.

2. No person may be licensed for a period of more than
1 year, and he may not be licensed until he has first satisfied the
Commissioner as to his personal integrity.

3. For the issuing of any license provided for in this
section and for any renewal thereof, the fee of the Commissioner is $5. All
sums so received by the Commissioner must be [delivered to the State
Treasurer and must be paid into]deposited in the State [General Fund.]Treasury pursuant to the
provisions of section 2 of this act.

4. Tellers or other employees of an insured savings
and loan association are exempt from the licensing requirements unless their
employment entails soliciting sales outside their respective offices as
commission salesmen.

Sec. 19. NRS 673.318 is hereby amended to
read as follows:

673.318 Every association shall appraise each parcel
of real estate at the time of acquisition thereof. The report of each appraisal
must be submitted in writing to the board of directors and must be kept in the
records of the association. The Commissioner may require the appraisal of real
estate securing loans by an appraiser selected by the Commissioner. The
association whose securities are appraised under this section shall pay the
expense of the appraisal to the Commissioner upon demand. Money so received
must be [paidinto]deposited in the State [General Fund.]Treasury pursuant to the
provisions of section 2 of this act. Copies of appraisals must be
furnished to the association.

Sec. 20. NRS 673.430 is hereby amended to
read as follows:

673.430 1. Each association doing business in this
state shall file annually with the Commissioner on or before March 1, a sworn
statement in two sections.

2. One section of the annual report must contain, in
such form and detail as the Commissioner may prescribe, the following:

(a) The amount of authorized capital by classes and the
par value of each class of stock.

(b) A statement of its assets, liabilities and capital
accounts as of the immediately preceding December 31.

(c) Any other facts which the Commissioner requires.

This section must be furnished in duplicate, one certified
copy to be returned for publication at least two times in a newspaper having a
general circulation in each county in which the association maintains an
office. Publication must be completed on or before May 1, and proof of publication
must be filed in the office of the Commissioner.

3. One section of the annual report must contain such
other information as the Commissioner may require to be furnished. This section
need not be published and must be treated as confidential by the Commissioner.

4. The Commissioner may impose and collect a penalty
of $5 for each day the annual report is overdue, up to a maximum of $500. Every
association shall pay to the Commissioner for supervision and examination a fee
based on the rate established pursuant to NRS 658.101.

5. All sums so received by the Commissioner must be [delivered
to the State Treasurer and paid into]deposited in the State [General Fund.]Treasury pursuant to the
provisions of section 2 of this act.

Sec. 21. NRS 673.460 is hereby amended to
read as follows:

673.460 1. Whenever in connection with an examination
it is necessary or expedient that the Commissioner or his deputy, or both, leave
this state, there must be assessed against the organization under examination a
fee of $25 per day for each person while without the State in connection with
an examination, together with all actual and necessary expenses.

2. The fee charged must be remitted to the
Commissioner, who shall [deliver it to the State Treasurer. The fees shall be paid
into]deposit
the fees in the State [General Fund.]Treasury pursuant to the
provisions of section 2 of this act.

Sec. 22. NRS 675.160 is hereby amended to read
as follows:

675.160 Except as otherwise provided in NRS 675.100,
all fees and charges collected under the provisions of this chapter must be [paid
into]deposited
in the State [General Fund, and the State Treasurer shall issue his receipt
therefor.]Treasury
pursuant to the provisions of section 2 of this act.

Sec. 23. NRS 675.400 is hereby amended to
read as follows:

675.400 1. At least once each year, the Commissioner
or his authorized representatives shall make an examination of the place of business
of each licensee and of the loans, transactions, books, papers and records of
the licensee so far as they pertain to the business licensed under this
chapter.

2. For each examination the Commissioner shall charge
and collect from the licensee a fee for conducting the examination and
preparing and typing the report of the examination at the rate established
pursuant to NRS 658.101.

3. All money collected by the Commissioner pursuant to
subsection 2 must be deposited in the State [General Fund.]Treasury pursuant to the
provisions of section 2 of this act.

Sec. 24. NRS 676.170 is hereby amended to
read as follows:

676.170 Except as otherwise provided in NRS 676.130,
all fees and charges collected under the provisions of this chapter must be [paid
into]deposited
in the State [General Fund.]Treasury pursuant to the provisions of section 2 of this
act.

Sec. 25. NRS 677.390 is hereby amended to
read as follows:

677.390 Except as otherwise provided in NRS 677.160,
all fees and charges collected under the provisions of this chapter must be
deposited in the State [General Fund.]Treasury pursuant to the provisions of section 2 of this
act.

Sec. 26. NRS 678.260 is hereby amended to
read as follows:

678.260 The Commissioner shall:

1. Adopt a regulation establishing the minimum surety
bond required of credit unions in relation to the amount of property under
their control.

2. Adopt a regulation that sets forth the records a
credit union must keep and prescribes the period for which those records must
be retained.

3. Maintain the original application of every credit
union in a permanent file.

4. Maintain for at least 6 years, every report filed
by a credit union with the Division of Financial Institutions.

5. Except as otherwise provided in NRS 678.800 and
678.810, deposit all fees, charges for expenses, assessments and other money
which is collected pursuant to the provisions of this chapter or any regulation
adopted [thereunder,]pursuant thereto in the State Treasury [for
credit to the State General Fund.]pursuant to the provisions of section 2 of this act.

6. Prepare copies of articles of incorporation and
bylaws consistent with the provisions of this chapter which may be used by
persons interested in organizing a credit union.

Secs. 27 and 28. (Deleted by amendment.)

Sec. 29. 1. This act becomes effective upon passage
and approval for the purposes of performing any preparatory administrative
tasks and adopting any regulations necessary to carry out the provisions of
this act and on July 1, 2003, for all other purposes.

2. Sections 12 and 13 of this act expire by limitation on
the date on which the provisions of 42 U.S.C. § 666 requiring each state to
establish procedures under which the state has authority to withhold or
suspend, or to restrict the use of professional, occupational and recreational
licenses of persons who:

(a) Have failed to comply with a subpoena or warrant
relating to a procedure to determine the paternity of a child or to establish
or enforce an obligation for the support of a child; or

(b) Are in arrears in the payment for the support of one or
more children,

are repealed by the Congress of the United States.

________

κ2003
Statutes of Nevada, Page 3236κ

CHAPTER 492, AB 444

Assembly Bill No. 444Committee on Transportation

CHAPTER 492

AN ACT relating to
transportation; authorizing vehicles used by the Department of Transportation
in the construction, maintenance or repair of highways to be equipped with tail
lamps that emit nonflashing blue light under certain circumstances; providing
an additional penalty for a violation of certain traffic laws in an area
designated as a temporary traffic control zone for construction, maintenance or
repair of a highway; requiring prosecution of a failure to comply with signals
of flagmen under certain circumstances; exempting certain benches, shelters and
stations for passengers of public mass transportation for which a franchise has
been granted from certain prohibitions against outdoor advertising; requiring a
franchisee to use revenues it receives from such authorized advertising for the
repayment of certain financial obligations; extending the prohibition against
the driver of a motor vehicle allowing a person to ride upon or within certain
portions of the motor vehicle under certain circumstances; providing penalties;
and providing other matters properly relating thereto.

[Approved: June 11, 2003]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 484 of NRS is hereby amended by
adding thereto a new section to read as follows:

An authorized
vehicle used by the Department of Transportation for the construction,
maintenance or repair of highways may be equipped with tail lamps that emit nonflashing
blue light which may be used:

1. For
vehicles that perform construction, maintenance or repair of highways,
including, without limitation, vehicles used for the removal of snow, when the
vehicle is engaged in such construction, maintenance or repair; and

2. For
all other authorized vehicles of the Department of Transportation used in the
construction, maintenance or repair of highways:

(a) In an
area designated as a temporary traffic control zone in which construction,
maintenance or repair of a highway is conducted; and

(b) At a time
when the workers who are performing the construction, maintenance or repair of
the highway are present.

Sec. 1.5.NRS 484.254 is hereby amended to
read as follows:

484.254 1. It is unlawful for a driver of a vehicle
to fail or refuse to comply with any signal of an authorized flagman serving in
a traffic control capacity in a clearly marked area of highway construction or
maintenance.

2. A
district attorney shall prosecute all violations of subsection 1 which occur in
his jurisdiction and which result in injury to any person performing highway
construction or maintenance unless the district attorney has good cause for not
prosecuting the violation. In addition to any other penalty, if a driver
violates any provision of subsection 1 and the violation results in injury to any person performing highway
construction or maintenance, or in damage to property in an amount of not less
than $1,000, the driver shall be punished by a fine of not less than $1,000 or
more than $2,000, and ordered to perform 120 hours of community service.

violation
results in injury to any person performing highway construction or maintenance,
or in damage to property in an amount of not less than $1,000, the driver shall
be punished by a fine of not less than $1,000 or more than $2,000, and ordered
to perform 120 hours of community service.

3. A
person who violates any provision of subsection 1 may be subject to the
additional penalty set forth in NRS 484.3667.

4. As
used in this section, authorized flagman serving in a traffic control
capacity means [an]:

(a) An
employee of the Department of Transportation or of a contractor performing
highway construction or maintenance for the Department of Transportation while he is carrying out the
duties of his employment [.] ;

(b) An employee
of any other governmental entity or of a contractor performing highway
construction or maintenance for the governmental entity while he is carrying
out the duties of his employment; or

(c) Any
other person employed by a private entity performing highway construction or
maintenance while he is carrying out the duties of his employment if the person
has satisfactorily completed training as a flagman approved or recognized by
the Department of Transportation.

Sec. 2. NRS 484.278 is hereby amended to read
as follows:

484.278 1. It is unlawful for any driver to disobey
the instructions of any official traffic-control device placed in accordance
with the provisions of this chapter, unless at the time otherwise directed by a
police officer.

2. No provision of this chapter for which such devices
are required [shall]may be enforced against an alleged violator if
at the time and place of the alleged violation [such]the device is not in
proper position and sufficiently legible to be seen by an ordinarily observant
person. Whenever a particular provision of this chapter does not state that
such devices are required, [such provision shall be]the provision is effective
even though no devices are erected or in place.

3. Whenever devices are placed in position
approximately conforming to the requirements of this chapter, such devices [shall
be]are presumed
to have been so placed by the official act or direction of a public authority,
unless the contrary is established by competent evidence.

4. Any device placed pursuant to the provisions of
this chapter and purporting to conform to the lawful requirements pertaining to
such devices [shall be]is presumed to comply with the requirements of
this chapter unless the contrary is established by competent evidence.

5. A
person who violates any provision of subsection 1 may be subject to the
additional penalty set forth in NRS 484.3667.

Sec. 2.5. NRS 484.287 is hereby amended to
read as follows:

484.287 1. It is unlawful for any person to place,
maintain or display upon or in view of any highway any unauthorized sign,
signal, marking or device which purports to be or is an imitation of or
resembles an official traffic-control device or railroad sign or signal, or
which attempts to direct the movement of traffic, or which hides from view or
interferes with the effectiveness of any such device, sign or signal, and
except as otherwise provided in subsection 4, a person shall not place or
maintain nor may any public authority permit upon any highway any sign, signal
or marking bearing thereon any commercial advertising except on benches and
shelters for passengers of public mass transportation for which a franchise has
been granted pursuant to NRS 244.187 and 244.188, 268.081 and 268.083 , [or]
269.128 and 269.129 [.] , or on monorail stations.

2. Every such prohibited sign, signal or marking is
hereby declared to be a public nuisance, and the proper public authority may
remove the same or cause it to be removed without notice.

3. This section does not prohibit the erection upon
private property adjacent to highways of signs giving useful directional
information and of a type that cannot be mistaken for official traffic-control
devices.

4. A person may place and maintain commercial
advertising in an airspace above a highway under the conditions specified
pursuant to subsection 3 of NRS 405.110, and a public authority may permit
commercial advertising that has been placed in an airspace above a highway
under the conditions specified pursuant to subsection 3 of NRS 405.110.

5. If a
franchisee receives revenues from commercial advertising authorized by
subsection 1 and the franchisee is obligated to repay a bond issued by the
State of Nevada, the franchisee shall use all revenue generated by the
advertising authorized by subsection 1 to meet its obligations to the State of
Nevada as set forth in the financing agreement and bond indenture, including,
without limitation, the payment of operations and maintenance obligations, the
funding of reserves and the payment of debt service. To the extent that any
surplus revenue remains after the payment of all such obligations, the surplus
revenue must be used solely to repay the bond until the bond is repaid.

6. As used in this section, monorail station means:

(a) A structure for the loading and unloading of
passengers from a monorail for which a franchise has been granted pursuant to
NRS 705.695 or an agreement has been entered into pursuant to NRS 705.695; and

(b) Any
facilities or appurtenances within such a structure.

Sec. 3. NRS 484.289 is hereby amended to read
as follows:

484.289 1.
A person shall not, without lawful authority, attempt to or
alter, deface, injure, knock down or remove any official traffic-control device
or any railroad sign or signal or any inscription, shield or insigne thereon,
or any other part thereof.

2. A
person who violates any provision of this section may be subject to the
additional penalty set forth in NRS 484.3667.

Sec. 4. NRS 484.291 is hereby amended to read
as follows:

484.291 1.
Upon all highways of sufficient width a vehicle [shall]must be driven upon
the right half of the highway, except as follows:

[1.](a) When overtaking and passing another
vehicle proceeding in the same direction under the laws governing such
movements;

[2.](b) When the right half of the highway is
closed to traffic;

[3.](c) Upon a highway divided into three lanes
for traffic under the laws applicable thereon;

[4.](d) Upon a highway designated and posted for
one-way traffic; or

[5.](e) When the highway is not of sufficient width.

2. A
person who violates any provision of this section may be subject to the
additional penalty set forth in NRS 484.3667.

Sec. 5. NRS 484.293 is hereby amended to read
as follows:

484.293 1.
Drivers of vehicles proceeding in opposite directions shall pass
each other keeping to the right, and upon highways having width for not more
than one line of traffic in each direction, each driver shall give to the other
at least one-half of the paved portion of the highway as nearly as possible.

2. A
person who violates any provision of this section may be subject to the
additional penalty set forth in NRS 484.3667.

Sec. 6. NRS 484.295 is hereby amended to read
as follows:

484.295 1. The driver of a vehicle overtaking another
vehicle proceeding in the same direction shall pass to the left thereof at a
safe distance and shall not again drive to the right side of the highway until
safely clear of the overtaken vehicle.

2. Except when overtaking and passing on the right is
permitted, the driver of an overtaken vehicle shall give way to the right in
favor of the overtaking vehicle upon observing the overtaking vehicle or
hearing a signal. The driver of an overtaken vehicle shall not increase the
speed of his vehicle until completely passed by the overtaking vehicle.

3. A
person who violates any provision of this section may be subject to the
additional penalty set forth in NRS 484.3667.

Sec. 7. NRS 484.297 is hereby amended to read
as follows:

484.297 1. The driver of a vehicle may overtake and
pass upon the right of another vehicle only under the following conditions:

(a) When the driver of the vehicle overtaken is making
or signaling to make a left turn.

(b) Upon a highway with unobstructed pavement, not
occupied by parked vehicles, of sufficient width for two or more lines of
moving vehicles in each direction.

(c) Upon any highway on which traffic is restricted to
one direction of movement, where the highway is free from obstructions and of
sufficient width for two or more lines of moving vehicles.

2. The driver of a vehicle may overtake and pass
another vehicle upon the right only under conditions permitting such movement
in safety.

3. The driver of a vehicle shall not overtake and pass
another vehicle upon the right when such movement requires driving off the
paved portion of the highway.

4. A
person who violates any provision of this section may be subject to the
additional penalty set forth in NRS 484.3667.

Sec. 8. NRS 484.299 is hereby amended to read
as follows:

484.299 1. A vehicle [shall]must not be driven
to the left side of the center of a two-lane, two-directional highway and
overtaking and passing another vehicle proceeding in the same direction, unless
such left side is clearly visible and is free of oncoming traffic for a
sufficient distance ahead to permit such overtaking and passing to be
completely made without interfering with the safe operation of any vehicle
approaching from the opposite direction or any vehicle overtaken.

2. A vehicle [shall]must not be driven
to the left side of the highway at any time:

(a) When approaching the crest of a grade or upon a
curve in the highway where the drivers view is obstructed within such distance
as to create a hazard in the event another vehicle might approach from the
opposite direction.

(b) When approaching within 100 feet or traversing any
intersection or railroad grade crossing.

(c) When the view is obstructed upon approaching within
100 feet of any bridge, viaduct or tunnel.

4. A
person who violates any provision of this section may be subject to the
additional penalty set forth in NRS 484.3667.

Sec. 9. NRS 484.301 is hereby amended to read
as follows:

484.301 1. The Department of Transportation with
respect to highways constructed under the authority of chapter 408 of NRS, and
local authorities with respect to highways under their jurisdiction, may
determine those zones of highways where overtaking and passing to the left or
making a left-hand turn would be hazardous, and may by the erection of official
traffic-control devices indicate such zones. When such devices are in place and
clearly visible to an ordinarily observant person , every driver of a vehicle shall obey the
directions thereof.

2. Except as otherwise provided in subsections 3 and 4, a
driver shall not drive on the left side of the highway within such zone or
drive across or on the left side of any pavement striping designed to mark such
zone throughout its length.

3. A driver may drive across a pavement striping
marking such zone to an adjoining highway if he has first given the appropriate
turn signal and there will be no impediment to oncoming or following traffic.

4. Except where otherwise provided, a driver may drive
across a pavement striping marking such a zone to make a left-hand turn if he
has first given the appropriate turn signal in compliance with NRS 484.343, if
it is safe and if it would not be an impediment to oncoming or following
traffic.

5. A
person who violates any provision of this section may be subject to the
additional penalty set forth in NRS 484.3667.

Sec. 10. NRS 484.305 is hereby amended to
read as follows:

484.305 1. If a highway has two or more clearly
marked lanes for traffic traveling in one direction, vehicles must:

(a) Be driven as nearly as practicable entirely within
a single lane; and

(b) Not be moved from that lane until the driver has
given the appropriate turn signal and ascertained that such movement can be
made with safety.

2. Upon a highway which has been divided into three
clearly marked lanes a vehicle must not be driven in the extreme left lane at
any time. A vehicle on such a highway must not be driven in the center lane
except:

(a) When overtaking and passing another vehicle where
the highway is clearly visible and the center lane is clear of traffic for a
safe distance;

(b) In preparation for a left turn; or

(c) When the center lane is allocated exclusively to
traffic moving in the direction in which the vehicle is proceeding and a sign
is posted to give notice of such allocation.

3. If a highway has been designed to provide a single
center lane to be used only for turning by traffic moving in both directions,
the following rules apply:

(a) A vehicle may be driven in the center turn lane
only for the purpose of making a left-hand turn.

(b) A vehicle must not travel more than 200 feet in a
center turn lane before making a left-hand turn.

4. If a highway has been designed to provide a single
right lane to be used only for turning, a vehicle must:

(a) Be driven in the right turn lane only for the
purpose of making a right turn; and

(b) While being driven in the right turn lane, not
travel through an intersection.

5. A
person who violates any provision of this section may be subject to the
additional penalty set forth in NRS 484.3667.

Sec. 11. NRS 484.309 is hereby amended to read
as follows:

484.309 1.
Every vehicle driven upon a divided highway [shall]must be driven only
upon the right-hand roadway and [shall]must not be driven over, across or within any
dividing space, barrier or section [nor]or make any left
turn, semicircular turn or U-turn, except through an opening in the barrier or
dividing section or space or at a crossover or intersection established by a
public authority.

2. A
person who violates any provision of this section may be subject to the
additional penalty set forth in NRS 484.3667.

Sec. 12. NRS 484.311 is hereby amended to
read as follows:

484.311 1.
When official traffic-control devices are erected giving notice
thereof, a person shall not drive a vehicle onto or from any controlled-access
highway except at those entrances and exits which are indicated by such
devices.

2. A
person who violates any provision of this section may be subject to the
additional penalty set forth in NRS 484.3667.

Sec. 13. NRS 484.335 is hereby amended to
read as follows:

484.335 1.
Whenever official traffic-control devices are erected indicating
that no right or left turn is permitted, it is unlawful for any driver of a
vehicle to disobey the directions of any such [sign.] devices.

2. A
person who violates any provision of this section may be subject to the
additional penalty set forth in NRS 484.3667.

Sec. 14. NRS 484.337 is hereby amended to
read as follows:

484.337 1. A U-turn may be made on any road where the
turn can be made with safety, except as prohibited by this section and by the
provisions of NRS 484.309 and 484.339.

2. If an official traffic-control device indicates
that a U-turn is prohibited, the driver shall obey the directions of the
device.

3. The driver of a vehicle shall not make a U-turn in
a business district, except at an intersection or on a divided highway where an
appropriate opening or crossing place exists.

4. Notwithstanding the foregoing provisions of this
section, local authorities and the Department of Transportation may prohibit
U-turns at any location within their respective jurisdictions.

5. A
person who violates any provision of this section may be subject to the
additional penalty set forth in NRS 484.3667.

Sec. 15. NRS 484.361 is hereby amended to
read as follows:

484.361 1.
It is unlawful for any person to drive or operate a vehicle of
any kind or character at:

[1.](a) A rate of speed greater than is reasonable
or proper, having due regard for the traffic, surface and width of the highway,
the weather and other highway conditions.

[2.](b) Such a rate of speed as to endanger the
life, limb or property of any person.

[3.](c) A rate of speed greater than that posted
by a public authority for the particular portion of highway being traversed.

2. A person
who violates any provision of this section may be subject to the additional
penalty set forth in NRS 484.3667.

Sec. 16. NRS 484.363 is hereby amended to
read as follows:

484.363 1.
The fact that the speed of a vehicle is lower than the
prescribed limits does not relieve a driver from the duty to decrease speed
when approaching and crossing an intersection, when approaching and going
around a curve, when approaching a hill crest, when traveling upon any narrow
or winding highway, or when special hazards exist or may exist with respect to
pedestrians or other traffic, or by reason of weather or other highway
conditions, and speed [shall]must be decreased as may be necessary to avoid
colliding with any person, vehicle or other conveyance on or entering a highway
in compliance with legal requirements and the duty of all persons to use due
care.

2. Any
person who fails to use due care as required by subsection 1 may be subject to
the additional penalty set forth in NRS 484.3667.

(a) In an area designated as a temporary traffic
control zone in which construction, maintenance or repair of a highway is
conducted; and

(b) At a time when the workers who are performing the
construction, maintenance or repair of the highway are present, or when the effects of the act may be
aggravated because of the condition of the highway caused by construction,
maintenance or repair, including, without limitation, reduction in lane width,
reduction in the number of lanes, shifting of lanes from the designated
alignment and uneven or temporary surfaces, including, without limitation,
modifications to road beds, cement-treated bases, chip seals and other similar
conditions,

shall be punished by imprisonment or by a fine, or both, for
a term or an amount equal to and in addition to the term of imprisonment or
amount of the fine, or both, that the court imposes for the primary offense.
Any term of imprisonment imposed pursuant to this subsection runs consecutively
with the sentence prescribed by the court for the crime. This subsection does
not create a separate offense, but provides an additional penalty for the
primary offense, whose imposition is contingent upon the finding of the
prescribed fact.

2. The [penalty imposed for the primary offense and the]
additional penalty imposed pursuant to subsection 1 must not exceed a total of
$1,000, 6 months of imprisonment or 120 hours of community service.

3. A governmental entity that designates an area as a
temporary traffic control zone in which construction, maintenance or repair of
a highway is conducted, or the person with whom the governmental entity
contracts to provide such service shall cause to be erected:

(a) A sign located before the beginning of such an area
[which states that]stating DOUBLE PENALTIES IN WORK ZONES to indicate
a double penalty [will] may be imposed [upon a person who is
convicted of violating the speed limit within the temporary traffic control
zone;]
pursuant to this section;

(b) A sign to mark the beginning of the temporary
traffic control zone; and

(c) A sign to mark the end of the temporary traffic
control zone.

4. A
person who otherwise would be subject to an additional penalty pursuant to this
section is not relieved of any criminal liability because signs are not erected
as required by subsection 3 if the violation results in injury to any person
performing highway construction or maintenance in the temporary traffic control
zone or in damage to property in an amount equal to $1,000 or more.

Sec. 18. NRS 484.367 is hereby amended to
read as follows:

484.367 1. Except as otherwise provided in subsection 2 and
pursuant to the power granted in NRS 269.185, the town board or board of county
commissioners may, by ordinance, limit the speed of motor vehicles in any
unincorporated town in the county as may be deemed proper.

2. The Department of Transportation may establish the
speed limits for motor vehicles on highways within the boundaries of any
unincorporated town which are constructed and maintained under the authority
granted by chapter 408 of NRS.

3. A person
who violates any speed limit established pursuant to this section may be
subject to the additional penalty set forth in NRS 484.3667.

Sec. 19. NRS 484.368 is hereby amended to
read as follows:

484.368 1. The Department of Transportation may
establish the speed limits for motor vehicles on highways which are constructed
and maintained by the Department of Transportation under the authority granted
to it by chapter 408 of NRS.

2. Except as otherwise provided by federal law, the
Department of Transportation may establish a speed limit on such highways not
to exceed 75 miles per hour and may establish a lower speed limit:

(c) Creates an immediate hazard, regardless of its
duration, to another vehicle or to another person, whether or not the other
person is riding in or upon the vehicle of the driver or any other vehicle.

2. A driver may be prosecuted and convicted of an
offense of aggressive driving in violation of subsection 1 whether or not the
driver is prosecuted or convicted for committing any of the acts described in
paragraphs (a) and (b) of subsection 1.

3. A driver who commits an offense of aggressive
driving in violation of subsection 1 is guilty of a misdemeanor. In addition to
any other penalty:

(a) For the first offense within 2 years, the court
shall order the driver to attend, at his own expense, a course of traffic
safety approved by the Department and may issue an order suspending the
drivers license of the driver for a period of not more than 30 days.

(b) For a second or subsequent offense within 2 years,
the court shall issue an order revoking the drivers license of the driver for
a period of 1 year.

4. To determine whether the provisions of paragraph
(a) or (b) of subsection 3 apply to one or more offenses of aggressive driving,
the court shall use the date on which each offense of aggressive driving was
committed.

5. If the driver is already the subject of any other
order suspending or revoking his drivers license, the court shall order the
additional period of suspension or revocation, as appropriate, to apply consecutively
with the previous order.

6. If the court issues an order suspending or revoking
the drivers license of the driver pursuant to this section, the court shall
require the driver to surrender to the court all drivers licenses then held by
the driver. The court shall, within 5 days after issuing the order, forward the
drivers licenses and a copy of the order to the Department.

7. If the driver successfully completes a course of
traffic safety ordered pursuant to this section, the Department shall cancel
three demerit points from his driving record in accordance with NRS 483.475,
unless the driver would not otherwise be entitled to have those demerit points
cancelled pursuant to the provisions of that section.

8. This section does not preclude the suspension or
revocation of the drivers license of the driver pursuant to any other
provision of law.

9. A
person who violates any provision of subsection 1 may be subject to the
additional penalty set forth in NRS 484.3667.

Sec. 21. NRS 484.377 is hereby amended to
read as follows:

484.377 1. It is unlawful for a person to:

(a) Drive a vehicle in willful or wanton disregard of
the safety of persons or property.

(b) Drive a vehicle in an unauthorized speed contest on
a public highway.

A violation of this subsection or subsection 1 of NRS 484.348
constitutes reckless driving.

2. A person who does any act or neglects any duty
imposed by law while driving or in actual physical control of any vehicle in
willful or wanton disregard of the safety of persons or property, if the act or
neglect of duty proximately causes the death of or substantial bodily harm to a
person other than himself, is guilty of a category B felony and shall be
punished by imprisonment in the state prison for a minimum term of not less
than 1 year and a maximum term of not more than 6 years,
or by a fine of not more than $5,000, or by both fine and imprisonment.

and a maximum term of not more than 6 years, or by a fine of
not more than $5,000, or by both fine and imprisonment.

3. A
person who violates any provision of this section may be subject to the
additional penalty set forth in NRS 484.3667 unless the person is subject to
the penalty provided pursuant to subsection 4 of NRS 484.348.

Sec. 22. NRS 484.379 is hereby amended to
read as follows:

484.379 1. It is unlawful for any person who:

(a) Is under the influence of intoxicating liquor;

(b) Has a concentration of alcohol of 0.10 or more in
his blood or breath; or

(c) Is found by measurement within 2 hours after
driving or being in actual physical control of a vehicle to have a
concentration of alcohol of 0.10 or more in his blood or breath,

to drive or be in actual physical control of a vehicle on a
highway or on premises to which the public has access.

2. It is unlawful for any person who:

(a) Is under the influence of a controlled substance;

(b) Is under the combined influence of intoxicating
liquor and a controlled substance; or

(c) Inhales, ingests, applies or otherwise uses any
chemical, poison or organic solvent, or any compound or combination of any of
these, to a degree which renders him incapable of safely driving or exercising
actual physical control of a vehicle,

to drive or be in actual physical control of a vehicle on a
highway or on premises to which the public has access. The fact that any person
charged with a violation of this subsection is or has been entitled to use that
drug under the laws of this state is not a defense against any charge of
violating this subsection.

3. It is unlawful for any person to drive or be in
actual physical control of a vehicle on a highway or on premises to which the
public has access with an amount of a prohibited substance in his blood or
urine that is equal to or greater than:

Prohibited substance Urine Blood

Nanograms Nanograms

per
milliliter per milliliter

(a) Amphetamine 500 100

(b) Cocaine 150 50

(c) Cocaine metabolite 150 50

(d) Heroin 2,000 50

(e) Heroin metabolite:

(1) Morphine 2,000 50

(2) 6-monoacetyl morphine 10 10

(f) Lysergic acid diethylamide 25 10

(g) Marijuana 10 2

(h) Marijuana metabolite 15 5

(i) Methamphetamine 500 100

(j) Phencyclidine 25 10

4. If consumption is proven by a preponderance of the
evidence, it is an affirmative defense under paragraph (c) of subsection 1 that
the defendant consumed a sufficient quantity of alcohol
after driving or being in actual physical control of the vehicle, and before
his blood or breath was tested, to cause him to have a concentration of alcohol
of 0.10 or more in his blood or breath.

consumed a sufficient quantity of alcohol after driving or
being in actual physical control of the vehicle, and before his blood or breath
was tested, to cause him to have a concentration of alcohol of 0.10 or more in
his blood or breath. A defendant who intends to offer this defense at a trial
or preliminary hearing must, not less than 14 days before the trial or hearing
or at such other time as the court may direct, file and serve on the
prosecuting attorney a written notice of that intent.

5. A person
who violates any provision of this section may be subject to the additional
penalty set forth in NRS 484.3667.

Sec. 23. NRS 484.448 is hereby amended to read as
follows:

484.448 1. It is unlawful for a person to drink an
alcoholic beverage while he is driving or in actual physical control of a motor
vehicle upon a highway.

2. Except as otherwise provided in this subsection, it
is unlawful for a person to have an open container of an alcoholic beverage
within the passenger area of a motor vehicle while the motor vehicle is upon a
highway. This subsection does not apply to a motor vehicle which is designed,
maintained or used primarily for the transportation of persons for
compensation, or to the living quarters of a house coach or house trailer.

3. A
person who violates any provision of this section may be subject to the
additional penalty set forth in NRS 484.3667.

4. As
used in this section:

(a) Alcoholic beverage has the meaning ascribed to it
in NRS 202.015.

(b) Open container means a container which has been
opened or the seal of which has been broken.

(c) Passenger area means that area of a vehicle which
is designed for the seating of the driver or a passenger.

Sec. 24. NRS 484.453 is hereby amended to
read as follows:

484.453 1. A person shall not drive a vehicle when it
is so loaded, or when there are in the front seat such number of persons,
exceeding three, as to obstruct the view of the driver to the front or sides of
the vehicle or as to interfere with the drivers control over the driving
mechanism of the vehicle.

2. A passenger in a vehicle shall not ride in such
position as to interfere with the drivers view ahead or to the sides, or to
interfere with his control over the driving mechanism of the vehicle.

3. Except as otherwise provided in NRS 484.6195, a
vehicle must not be operated upon any highway unless the drivers vision
through any required glass equipment is normal.

4. A
person who violates any provision of this section may be subject to the
additional penalty set forth in NRS 484.3667.

Sec. 24.5.NRS 484.473 is hereby amended
to read as follows:

484.473 1. Except as otherwise provided in
subsections 2 and 4, a driver shall not permit a person, with regard to a motor
vehicle being operated on a paved highway ,[within a county whose
population is 100,000 or more,] to ride upon or within any
portion of the vehicle that is primarily designed or intended for carrying
goods or other cargo or that is otherwise not designed or intended for the use
of passengers, including, without limitation:

2. A driver may permit a person to ride upon the bed
of a flatbed truck or within the bed of a pickup truck if the person is:

(a) Eighteen years of age or older; or

(b) Under 18 years of age and the motor vehicle is:

(1) [Not being operated on a
freeway or other road that has two or more lanes for traffic traveling in one
direction;

(2)]
Being used in the course of farming or ranching; or

[(3)](2) Being driven in a parade authorized by a
local authority.

3. A citation must be issued to a driver who permits a
person to ride upon [the bed of a flatbed truck] or within [the
bed of a pickup truck]a vehicle in violation of subsection 1. A
driver who is cited pursuant to this subsection shall be punished by a fine of
at least $35 but not more than $100.

4. The provisions of subsection 1 do not apply to the
portion of the bed of a truck that is covered by a camper shell or slide-in
camper.

5. A violation of this section:

(a) Is not a moving traffic violation for the purposes
of NRS 483.473; and

(b) May not be considered as:

(1) Negligence or causation in a civil action;
or

(2) Negligent or reckless driving for the
purposes of NRS 484.377.

6. As used in this section:

(a) Camper shell has the meaning ascribed to it in
NRS 361.017.

(b) [Freeway has the meaning ascribed to it in NRS 408.060.

(c)]
Slide-in camper has the meaning ascribed to it in NRS 482.113.

Sec. 25. NRS 484.479 is hereby amended to
read as follows:

484.479 1. It [shall be]is unlawful for any
person to remove any barrier or sign stating that a highway is closed to
traffic.

2. It [shall be]is unlawful to pass over a highway that is
marked, signed or barricaded to indicate that it is closed to traffic. A person who violates any provision of
this subsection may be subject to the additional penalty set forth in NRS
484.3667.

Sec. 26. NRS 405.030 is hereby amended to read as
follows:

405.030 1. Except as otherwise provided in subsection
3 and except within the limits of any city or town through which the highway
may run, and on benches and shelters for passengers of public mass
transportation built pursuant to a franchise granted pursuant to NRS 244.187
and 244.188, 268.081 and 268.083 ,
[or] 269.128 and 269.129 [,] , or on monorail stations,
it is unlawful for any person, firm or corporation to paste, paint, print or in
any manner whatever place or attach to any building, fence, gate, bridge, rock,
tree, board, structure or anything whatever, any written, printed, painted or
other outdoor advertisement, bill, notice, sign, picture, card or poster:

(a) Within any right-of-way of any state highway or
road which is owned or controlled by the Department of Transportation.

(b) Within 20 feet of the main traveled way of any
unimproved highway.

(c) On the property of another within view of any such
highway, without the owners written consent.

2. Nothing in this section prevents the posting or
maintaining of any notices required by law to be posted or maintained, or the
placing or maintaining of highway signs giving directions and distances for the
information of the traveling public if the signs are approved by the Department
of Transportation.

3. A tenant of a mobile home park may exhibit a
political sign within a right-of-way of a state highway or road which is owned
or controlled by the Department of Transportation if the tenant exhibits the
sign within the boundary of his lot and in accordance with the requirements and
limitations set forth in NRS 118B.145. As used in this subsection, the term
political sign has the meaning ascribed to it in NRS 118B.145.

4. If a
franchisee receives revenues from an advertisement, bill, notice, sign,
picture, card or poster authorized by subsection 1 and the franchisee is
obligated to repay a bond issued by the State of Nevada, the franchisee shall
use all revenue generated by the advertisement, bill, notice, sign, picture,
card or poster authorized by subsection 1 to meet its obligations to the State
of Nevada as set forth in the financing agreement and bond indenture,
including, without limitation, the payment of operations and maintenance
obligations, the funding of reserves and the payment of debt service. To the
extent that any surplus revenue remains after the payment of all such
obligations, the surplus revenue must be used solely to repay the bond, until
the bond is repaid.

5. As used in this section, monorail station means:

(a) A structure for the loading and unloading of
passengers from a monorail for which a franchise has been granted pursuant to
NRS 705.695 or an agreement has been entered into pursuant to NRS 705.695; and

(b) Any
facilities or appurtenances within such a structure.

Sec. 27. NRS 405.110 is hereby amended to read as
follows:

405.110 1. Except on benches and shelters for
passengers of public mass transportation for which a franchise has been granted
pursuant to NRS 244.187 and 244.188, 268.081 and 268.083 , [or]
269.128 and 269.129 [,], or on monorail stations, no advertising
signs, signboards, boards or other materials containing advertising matter may:

(a) Except as otherwise provided in subsection 3, be
placed upon or over any state highway.

(b) Except as otherwise provided in subsections 3 and
4, be placed within the highway right-of-way.

(c) Except as otherwise provided in subsection 3, be
placed upon any bridge or other structure thereon.

(d) Be so situated with respect to any public highway
as to obstruct clear vision of an intersecting highway or highways or otherwise
so situated as to constitute a hazard upon or prevent the safe use of the state
highway.

2. With the permission of the Department of
Transportation, counties, towns or cities of this state may place at such
points as are designated by the Director of the Department of Transportation
suitable signboards advertising the counties, towns or municipalities.

3. A person may place an advertising sign, signboard,
board or other material containing advertising matter in any airspace above a
highway if:

(a) The Department of Transportation has leased the
airspace to the person pursuant to subsection 2 of NRS 408.507, the airspace is
over an interstate highway and:

(1) The purpose of the sign, signboard, board or
other material is to identify a commercial establishment that is entirely
located within the airspace, services rendered, or goods produced or sold upon
the commercial establishment or that the facility or property that is located
within the airspace is for sale or lease; and

(2) The size, location and design of the sign,
signboard, board or other material and the quantity of signs, signboards,
boards or other materials have been approved by the Department of
Transportation; or

(1) The person has dedicated to a public
authority a fee or perpetual easement interest in at least 1 acre of the
property for the construction or maintenance, or both, of the highway over
which he is placing the sign, signboard, board or other material and the person
retained the air rights in the airspace above the property for which the person
has dedicated the interest;

(2) The sign, signboard, board or other material
is located in the airspace for which the person retained the air rights;

(3) The structure that supports the sign,
signboard, board or other material is not located on the property for which the
person dedicated the fee or easement interest to the public authority, and the
public authority determines that the location of the structure does not create
a traffic hazard; and

(4) The purpose of the sign, signboard, board or
other material is to identify an establishment or activity that is located on
the real property adjacent to the interstate highway, or services rendered or
goods provided or sold on that property.

4. A tenant of a mobile home park may exhibit a
political sign within a right-of-way of a state highway or road which is owned
or controlled by the Department of Transportation if the tenant exhibits the
sign within the boundary of his lot and in accordance with the requirements and
limitations set forth in NRS 118B.145. As used in this subsection, the term
political sign has the meaning ascribed to it in NRS 118B.145.

5. If any such sign is placed in violation of this
section, it is thereby declared a public nuisance and may be removed forthwith
by the Department of Transportation or the public authority.

6. Any person placing any such sign in violation of
the provisions of this section shall be punished by a fine of not more than
$250, and is also liable in damages for any injury or injuries incurred or for
injury to or loss of property sustained by any person by reason of the
violation.

7. If a
franchisee receives revenues from an advertising sign, signboard, board or
other material containing advertising matter authorized by subsection 1 and the
franchisee is obligated to repay a bond issued by the State of Nevada, the
franchisee shall use all revenue generated by the advertising sign, signboard,
board or other material containing advertising matter authorized by subsection
1 to meet its obligations to the State of Nevada as set forth in the financing
agreement and bond indenture, including, without limitation, the payment of
operations and maintenance obligations, the funding of reserves and the payment
of debt service. To the extent that any surplus revenue remains after the
payment of all such obligations, the surplus revenue must be used solely to
repay the bond until the bond is repaid.

8. As used in this section, monorail station means:

(a) A structure for the loading and unloading of
passengers from a monorail for which a franchise has been granted pursuant to
NRS 705.695 or an agreement has been entered into pursuant to NRS 705.695; and

AN ACT relating to
programs for public personnel; requiring the governing body of a local
government to pay a certain portion of the costs of coverage under the Public
Employees Benefits Program for persons retired from the service of the local
government who join the Program upon retirement; requiring each governing body
of a local government to ensure that rates established for coverage for their
programs of group insurance are the same for all participants; requiring the
Board of the Public Employees Benefits Program to establish rates and coverage
for active and retired officers and employees of local governments that
participate in the Program and their dependents based on the separate
commingled claims experience of those active and retired officers and employees
and their dependents; providing a period of open enrollment in which retired
public officers and employees of local governments who joined the Public
Employees Benefits Program upon retirement may join the group insurance or
medical and hospital service of their last public employer; and providing other
matters properly relating thereto.

[Approved: June 11, 2003]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1.NRS 287.023 is hereby amended to
read as follows:

287.023 1. Whenever an officer or employee of the
governing body of any county, school district, municipal corporation, political
subdivision, public corporation or other public agency of the State of Nevada
retires under the conditions set forth in NRS 1A.350 or 1A.480, or 286.510 or
286.620 and, at the time of his retirement, was covered or had his dependents
covered by any group insurance or medical and hospital service established
pursuant to NRS 287.010 [and]or 287.020, the officer or employee has the
option upon retirement to cancel or continue any such group insurance or
medical and hospital service coverage or join the Public Employees Benefits
Program to the extent that such coverage is not provided to him or a dependent
by the Health Insurance for the Aged Act, 42 U.S.C. §§ 1395 et seq.

2. A retired person who joins the Public Employees Benefits Program upon retirement
pursuant to subsection 1 or continues coverage under the Public
Employees Benefits Program shall assume the portion of the premium or [membership]contribution costs
for the coverage [continued] which the governing body or the State does not pay
on behalf of retired officers or employees. [A person who joins the
Public Employees Benefits Program for the first time upon retirement shall
assume all costs for the coverage.]

coverage.]
A dependent of such a retired person has the option, which may be exercised to
the same extent and in the same manner as the retired person, to cancel or
continue coverage in effect on the date the retired person dies. The dependent
is not required to continue to receive retirement payments from the Public
Employees Retirement System to continue coverage.

3. Except as otherwise provided in NRS 287.0235,
notice of the selection of the option must be given in writing to the last
public employer of the officer or employee within 60 days after the date of
retirement or death, as the case may be. If no notice is given by that date,
the retired employee and his dependents shall be deemed to have selected the
option to cancel the coverage or not to join the Public Employees Benefits
Program, as the case may be.

4. The governing body of any county, school district,
municipal corporation, political subdivision, public corporation or other
public agency of this state [may]:

(a) May pay
the cost, or any part of the cost, of group insurance and medical and hospital
service coverage established
pursuant to NRS 287.010 or 287.020 for persons [eligible
for]who
continue that coverage pursuant to subsection 1, but it must not
pay a greater portion than it does for its current officers and employees.

(b) Shall
pay the same portion of the cost of coverage under the Public Employees
Benefits Program for persons who join the Program upon retirement pursuant to
subsection 1 as the State pays pursuant to subsection 2 of NRS 287.046 for
persons retired from state service who have continued to participate in the
Program.

5. The
governing body of any county, school district, municipal corporation, political
subdivision, public corporation or other public agency of this state shall, for
the purpose of establishing actuarial data to determine rates and coverage for
persons who continue coverage for group insurance or medical and hospital
service with the governing body pursuant to subsection 1, commingle the claims
experience of those persons with the claims experience of active officers and
employees and their dependents who participate in the group insurance or
medical and hospital service.

Sec. 2. NRS 287.040 is hereby amended to read
as follows:

287.040 The provisions of NRS 287.010 to 287.040,
inclusive, do not make it compulsory upon any governing body of any county,
school district, municipal corporation, political subdivision, public
corporation or other public agency of the State of Nevada to, except as
otherwise provided in NRS 287.021, [make any contributions
for the payment of]pay any premiums , contributions or other costs for group
insurance or medical or hospital services[,]established pursuant to NRS 287.010 or
287.020 or upon any officer or employee of any county, school
district, municipal corporation, political subdivision, public corporation or
other public agency of this state to accept or join any plan of group insurance
or to assign his wages or salary or to authorize deductions from his wages or
salary in payment of premiums or contributions therefor.

Sec. 3. NRS 287.043 is hereby amended to read
as follows:

287.043 1. The Board shall:

(a) Establish and carry out a program to be known as
the Public Employees Benefits Program which:

(1) Must include a program relating to group
life, accident or health insurance, or any combination of these; and

(2) May include a program to reduce taxable
compensation or other forms of compensation other than deferred compensation,

for the benefit of all state officers and employees and other
persons who participate in the Program.

(b) Ensure that the Program is funded on an
actuarially sound basis and operated in accordance with sound insurance and
business practices.

2. In establishing and carrying out the Program, the
Board shall:

(a) For the purpose of establishing actuarial data to
determine rates and coverage for active and retired state officers and
employees and their dependents, commingle the claims experience of such active
and retired officers and employees and their dependents.

(b) Except as otherwise provided in this paragraph,
negotiate and contract with the governing body of any public agency enumerated
in NRS 287.010 that wishes to obtain group insurance for its active and retired officers
[, employees and retired]and employees and their dependents by
participation in the Program. The Board shall establish separate rates and
coverage for [those officers, employees and retired]active and retired officers and employees
of those public agencies and their
dependents based on actuarial reports [.] that commingle the claims experience of
such active and retired officers and employees and their dependents.

(c) Except as otherwise provided in paragraph (d),
provide public notice in writing of any proposed changes in rates or coverage
to each participating public employer who may be affected by the changes.
Notice must be provided at least 30 days before the effective date of the
changes.

(d) If a proposed change is a change in the premium or contribution charged
for or coverage of health insurance, provide written notice of the proposed
change to all [state officers, employees, retired employees and other persons
who participate]participants in the Program .[who may be affected by
the proposed change.] The notice must be provided at least
60 days before the date a [state officer, employee, retired employee or other person]participant in the Program is
required to select or change his policy of health insurance.

(e) Purchase policies of life, accident or health
insurance, or any combination of these, or, if applicable, a program to reduce
the amount of taxable compensation pursuant to 26 U.S.C. § 125, from any
company qualified to do business in this state or provide similar coverage
through a plan of self-insurance established pursuant to NRS 287.0433 for the
benefit of all eligible [public officers, employees and retired employees who
participate]participants
in the Program.

(f) Except as otherwise provided in this title, develop
and establish other employee benefits as necessary.

(g) Investigate and approve or disapprove any contract
proposed pursuant to NRS 287.0479.

(h) Adopt such regulations and perform such other
duties as are necessary to carry out the provisions of NRS 287.0402 to 287.049,
inclusive, including, without limitation, the establishment of:

(1) Fees for applications for participation in
the Program and for the late payment of premiums or contributions;

(2) Conditions for entry and reentry into the
Program by public agencies enumerated in NRS 287.010;

(3) [The levels of
participation in the Program required for employees of participating public
agencies;

(4)]
Procedures by which a group of participants in the Program may leave the
Program pursuant to NRS 287.0479 and conditions and procedures for reentry into
the Program by those participants; and

[(5)] (4) Specific procedures for the determination
of contested claims.

(i) Appoint an independent certified public accountant.
The accountant shall:

(1) Provide an annual audit of the Program; and

(2) Report to the Board and the Interim
Retirement and Benefits Committee of the Legislature created pursuant to NRS
218.5373.

(j) Appoint an attorney who specializes in employee
benefits. The attorney shall:

(1) Perform a biennial review of the Program to
determine whether the Program complies with federal and state laws relating to
taxes and employee benefits; and

(2) Report to the Board and the Interim
Retirement and Benefits Committee of the Legislature created pursuant to NRS
218.5373.

3. The Board shall submit an annual report regarding
the administration and operation of the Program to the Director of the
Legislative Counsel Bureau not more than 6 months before the Board establishes
rates and coverage for [members]participants for the following calendar year.
The report must include, without limitation:

(a) The amount paid by the Program in the preceding
calendar year for the claims of active and retired [state officers and
employees;]participants
in the Program; and

(b) The amount paid by the Program in the preceding
calendar year for the claims of retired [members of]participants in the
Program who were provided coverage for medical or hospital service, or both, by
the Health Insurance for the Aged Act, 42 U.S.C. §§ 1395 et seq., or a plan
that provides similar coverage.

4. The Board may use any services provided to state
agencies and shall use the services of the Purchasing Division of the
Department of Administration to establish and carry out the Program.

5. The Board may make recommendations to the
Legislature concerning legislation that it deems necessary and appropriate
regarding the Program.

6. The State and any other public employers that
participate in the Program are not liable for any obligation of the Program
other than indemnification of the Board and its employees against liability
relating to the administration of the Program, subject to the limitations
specified in NRS 41.0349.

7. As used in this section, employee benefits
includes any form of compensation provided to a public employee except federal
benefits, wages earned, legal holidays, deferred compensation and benefits
available pursuant to chapter 286 of NRS.

Sec. 4. NRS 287.0434 is hereby amended to
read as follows:

287.0434 The Board may:

1. Use its assets to pay the expenses of health care
for its members and covered dependents, to pay its employees salaries and to
pay administrative and other expenses.

2. Enter into contracts relating to the administration
of the Program, including, without limitation, contracts with licensed
administrators and qualified actuaries. Each such contract with a licensed
administrator:

(a) Must be submitted to the Commissioner of Insurance
not less than 30 days before the date on which the contract is to become
effective for approval as to the reasonableness of administrative charges in
relation to contributions collected and benefits provided.

(b) Does not become effective unless approved by the Commissioner.

(c) Shall be deemed to be approved if not disapproved
by the Commissioner of Insurance within 30 days after its submission.

3. Enter into contracts with physicians, surgeons,
hospitals, health maintenance organizations and rehabilitative facilities for
medical, surgical and rehabilitative care and the evaluation, treatment and
nursing care of members and covered dependents. The Board shall not enter into
a contract pursuant to this subsection unless:

(a) Provision is made by the Board to offer all the
services specified in the request for proposals, either by a health maintenance
organization or through separate action of the Board.

(b) The rates set forth in
the contract are based on :

(1) For active and retired state officers and
employees and their dependents, the commingled claims experience
of such active and
retired [state] officers and employees and their dependents; and

(2)
For active and retired officers and employees of public agencies enumerated in
NRS 287.010 that contract with the Program to obtain group insurance by
participation in the Program and their dependents, the commingled claims
experience of such active and retired officers and employees and their dependents.

4. Enter into contracts for the services of other experts
and specialists as required by the Program.

5. Charge and collect from an insurer, health
maintenance organization, organization for dental care or nonprofit medical
service corporation, a fee for the actual expenses incurred by the Board, the
State or a participating public employer in administering a plan of insurance
offered by that insurer, organization or corporation.

Sec. 5. NRS 287.045 is hereby amended to read
as follows:

287.045 1. Except as otherwise provided in this
section, every officer or employee of the State is eligible to participate in
the Program on the first day of the month following the completion of 90 days
of full-time employment.

2. Professional employees of the University and
Community College System of Nevada who have annual employment contracts are
eligible to participate in the Program on:

(a) The effective dates of their respective employment
contracts, if those dates are on the first day of a month; or

(b) The first day of the month following the effective
dates of their respective employment contracts, if those dates are not on the
first day of a month.

3. Every officer or employee who is employed by a
participating public agency on a permanent and full-time basis on the date the
agency enters into an agreement to participate in the Program, and every
officer or employee who commences his employment after that date , is eligible to
participate in the Program on the first day of the month
following the completion of 90 days of full-time employment.

the Program on the first day of the month following the
completion of 90 days of full-time employment.

4. Every Senator and Assemblyman is eligible to
participate in the Program on the first day of the month following the 90th day
after his initial term of office begins.

5. An officer or employee of the governing body of any
county, school district, municipal corporation, political subdivision, public
corporation or other public agency of the State of Nevada who retires under the
conditions set forth in NRS 1A.350 or 1A.480, or 286.510 or 286.620 and was not
participating in the Program at the time of his retirement is eligible to
participate in the Program 60 days after notice of the selection to participate
is given pursuant to NRS 287.023 or 287.0235. [The Board shall make a
separate accounting for these retired persons. For the first year following
enrollment, the rates charged must be the full actuarial costs determined by
the actuary based upon the expected claims experience with these retired
persons. The claims experience of these retired persons must not be commingled
with the retired persons who were members of the Program before their
retirement, nor with active employees of the State. After the first year
following enrollment, the rates charged must be the full actuarial costs
determined by the actuary based upon the past claims experience of these
retired persons since enrolling.]

6. Notwithstanding the provisions of subsections 1, 3
and 4, if the Board does not, pursuant to NRS 689B.580, elect to exclude the
Program from compliance with NRS 689B.340 to 689B.590, inclusive, and if the
coverage under the Program is provided by a health maintenance organization
authorized to transact insurance in this state pursuant to chapter 695C of NRS,
any affiliation period imposed by the Program may not exceed the statutory
limit for an affiliation period set forth in NRS 689B.500.

Sec. 6. NRS 287.046 is hereby amended to read
as follows:

287.046 1. Except as otherwise provided in subsection
6, any state or other participating officer or employee who elects to
participate in the Program may participate, and the department, agency, commission
or public agency that employs the officer or employee shall pay the States
share of the cost of the premiums or contributions for the Program from money
appropriated or authorized as provided in NRS 287.044. Employees who elect to
participate in the Program must authorize deductions from their compensation
for the payment of premiums or contributions for the Program. Any deduction
from the compensation of an employee for the payment of a premium or contribution for health
insurance must be based on the actual [cost of providing that
health insurance]amount of the premium or contribution after
deducting any amount of the premium or contribution which is paid by the department, agency,
commission or public agency that employs the employee. [As used in this
subsection, actual cost includes any amount which has been approved by the
Board and which is paid by any department, agency, commission or public agency
of this state for:

(a) A
program of supplemental insurance;

(b) Subsidization
of premiums for health insurance for dependents and retired participants;

(c) Administrative
costs relating to the provision of the health insurance; and

2. The Department of Personnel shall pay a percentage
of the base amount provided by law for that fiscal year toward the cost of the
premiums or contributions for the Program for persons retired from the service
of the State who have continued to participate in the Program. Except as
otherwise provided in subsection 3, the percentage to be paid must be calculated
as follows:

(a) For those persons who retire before January 1,
1994, 100 percent of the base amount provided by law for that fiscal year.

(b) For those persons who retire on or after January 1,
1994, with at least 5 years of state service, 25 percent plus an additional 7.5
percent for each year of service in excess of 5 years to a maximum of 137.5
percent, excluding service purchased pursuant to NRS 1A.310 or 286.300, of the
base amount provided by law for that fiscal year.

3. If the amount calculated pursuant to subsection 2
exceeds the actual premium or contribution for the plan of the Program that the
retired participant selects, the balance must be credited to the Fund for the
Public Employees Benefits Program created pursuant to NRS 287.0435.

4. For the purposes of subsection 2:

(a) Credit for service must be calculated in the manner
provided by chapter 286 of NRS.

(b) No proration may be made for a partial year of
service.

5. The Department shall agree through the Board with
the insurer for billing of remaining premiums or contributions for the retired
participant and his dependents to the retired participant and to his dependents
who elect to continue coverage under the Program after his death.

6. A Senator or Assemblyman who elects to participate in
the Program shall pay the entire premium or contribution for his insurance.

Sec. 7. NRS 287.0475 is hereby amended to
read as follows:

287.0475 1. A public officer or employee who has retired pursuant
to NRS 1A.350 or 1A.480, or 286.510 or 286.620, or a retirement program
provided pursuant to NRS 286.802, or the surviving spouse of such a retired
public officer or employee
who is deceased may, in any even-numbered year, reinstate any insurance, except
life insurance, which was provided to him and his dependents at the time of his
retirement pursuant to NRS 287.010 or 287.020 or the program as a public officer or employee by:

(a) Giving written notice of his intent to reinstate
the insurance to [the employees]his last public employer not later than
January 31, of an even-numbered year;

(b) Accepting the public employers current program or
plan of insurance and any subsequent changes thereto; and

(c) Paying any portion of the premiums or contributions
of the public employers program or plan of insurance, in the manner set forth
in NRS 1A.470 or 286.615, which are due from the date of reinstatement and not
paid by the public employer.

The last public employer shall give the insurer notice of the
reinstatement no later than March 31, of the year in which the public officer or employee or
surviving spouse gives notice of his intent to reinstate the insurance. [The
insurer shall approve or disapprove the request for reinstatement within 90
days after the date of the request.]

2. Reinstatement of insurance excludes claims for
expenses for any condition for which medical advice, treatment or consultation
was rendered within 6 months before reinstatement unless:

(a) The person has not received any medical advice,
treatment or consultation for a period of 6 consecutive months after the
reinstatement; or

(b) The reinstated insurance has been in effect more
than 12 consecutive months.

3. The
last public employer of a retired officer or employee who reinstates insurance,
except life insurance, which was provided to him and his dependents at the time
of his retirement pursuant to NRS 287.010 or 287.020, shall, for the purpose of
establishing actuarial data to determine rates and coverage for such persons,
commingle the claims experience of such persons with the claims experience of
active and retired officers and employees and their dependents who participate
in that group insurance or medical and hospital service.

Sec. 8. 1. Notwithstanding the provisions of NRS
287.0475, an officer or employee of a governing body of a county, school
district, municipal corporation, political subdivision, public corporation or
other public agency of the State of Nevada who joined the Public Employees
Benefits Program upon retirement pursuant NRS 287.023 or 287.0235 may join the
group insurance or medical and hospital service established by the governing
body pursuant to NRS 287.010 or 287.020 to the extent that such coverage is not
provided to him or a dependent by the Health Insurance for the Aged Act, 42
U.S.C. §§ 1395 et seq., upon notifying the governing body during the period
established pursuant to subsection 2 and assuming the costs of that coverage
that are not paid by the governing body.

2. Each governing body shall have a period of open
enrollment between September 1, 2003, and January 31, 2004, during which
eligible retired persons described in subsection 1 may join the group insurance
or medical and hospital service established by the governing body pursuant to
NRS 287.010 or 287.020.

3. The governing body shall, on or before September 1,
2003, notify eligible retired persons of the period of open enrollment by:

(a) Mailing a notice regarding the period of open
enrollment to all retired persons who are, according to its records, eligible
to join its program ofgroup
insurance or medical and hospital service;

(b) Posting a notice of the period of open enrollment
at its principal office and at least three other separate prominent places,
such as a library, community center or courthouse; and

(c) Publicizing the period of open enrollment in any
other manner reasonablycalculated
to inform additional eligible retired persons.

4. For the purpose of establishing actuarial data to
determine rates and coverage for persons who enroll in the group insurance or
medical and hospital service of a governing body pursuant to this section, the
governing body shall commingle the claims experiences of those persons with the
claims experience of active and retired officers and employees and their
dependents who participate in the group insurance or medical and hospital
service.

Sec. 9. The provisions of NRS 354.599 do not apply
to any additional expenses of a local government that are related to the
provisions of this act.

Sec. 10. 1. This section and section 8 of this act
become effective on July 1, 2003.

2. Sections 1 to 7, inclusive, and 9 of this act become
effective on October 1, 2003.

________

κ2003
Statutes of Nevada, Page 3258κ

CHAPTER 494, AB 249

Assembly Bill No. 249Committee on Government Affairs

CHAPTER 494

AN ACT relating to
the Public Employees Benefits Program; requiring certain agencies to use the
amounts specified by the Public Employees Benefits Program for coverage by the
Program for payroll deductions from the salaries of participating officers and
employees; requiring the Public Employees Retirement System and each public
employer that participates in the Program to provide information to the Program
concerning the change in status of an active or retired officer or employee;
eliminating the requirement that certain retired persons show evidence of good
health as a condition of enrollment in the Program; providing that the subsidy
paid by the State of Nevada for coverage by the Program of retirees applies to
any retired public officer or employee with state service; limiting that
subsidy to years of state service; repealing the prospective expiration of two
positions on the Board of the Program; repealing the period of open enrollment
for certain retired persons to join the Program; and providing other matters properly
relating thereto.

[Approved: June 11, 2003]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 281.129 is hereby amended to
read as follows:

281.129 1.
Any officer of the State, except the Legislative Fiscal Officer,
who disburses money in payment of salaries and wages of officers and employees
of the State [may,] :

(a) May, upon
written requests of the officer or employee specifying amounts, withhold those
amounts and pay them to:

[1.](1) Charitable organizations;

[2.](2) Employee credit unions;

[3. Insurers, if the Board of the Public Employees Benefits
Program has approved the request;

4.](3)Except as otherwise provided in
paragraph (b), insurers;

(4)
The United States for the purchase of savings bonds and similar
obligations of the United States; and

[5.](5) Employee organizations and labor
organizations.

(b) Shall,
upon receipt of information from the Public Employees Benefits Program
specifying amounts of premiums or contributions for coverage by the Program,
withhold those amounts from the salaries or wages of officers and employees who
participate in the Program and pay those amounts to the Program.

2. The
State Controller may adopt regulations necessary to withhold money from the
salaries or wages of officers and employees of the executive department.

Sec. 2. Chapter 286 of NRS is hereby amended
by adding thereto a new section to read as follows:

The System
shall provide to the Public Employees Benefits Program written notice
regarding a change in the payment status of a recipient of benefits provided
pursuant to this chapter that affects the eligibility of the recipient to
participate in the Program. Such notice must be provided by the System to the
Program, in a format agreed upon by the System and the Program, within 30
calendar days after the System is notified of the change in payment status.

Sec. 3. NRS 286.615 is hereby amended to read
as follows:

286.615 1. In addition to the options provided in NRS
287.023 and subject to the requirements of that section, any officer or
employee of [the governing body of any county, school district, municipal
corporation, political subdivision, public corporation or other public agency
of the State of Nevada,]a governmental entity enumerated in subsection 1 of NRS
287.023, who retires under the conditions set forth in NRS 1A.350, 1A.480, 286.510 or 286.620 and, at the
time of his retirement, was covered or had his dependents covered by any group
insurance or medical and hospital service established pursuant to NRS 287.010 [and
287.020,],
287.020 or paragraph (b), (c) or (d) of subsection 1 of NRS 287.025, has
the option of having the Executive Officer deduct and pay his premium or
contribution for that [group insurance or medical and hospital service]
coverage, as well as the amount due or to become due upon any obligation
designated by the Board pursuant to subsection 2, from his monthly retirement
allowance until:

(a) He notifies the Executive Officer to discontinue
the deduction; or

(b) Any of his dependents elect to assume the premium
or contribution applicable to the dependents coverage before the death of such
a retired person and continue coverage pursuant to NRS 287.023 after his death.

2. The Board may adopt regulations to carry out the
provisions of subsection 1, including, but not limited to, regulations
governing the number and types of obligations, amounts for the payment of which
may be deducted and paid by the Board at the option of the officer or employee
pursuant to this section.

3. The Executive Officer, Board and System are not
liable for any damages resulting from errors or omissions concerning the
deductions and payment of premiums or contributions authorized pursuant to this
section unless willful neglect or gross negligence is proven.

Sec. 4. Chapter 287 of NRS is hereby amended
by adding thereto the provisions set forth as sections 5, 6 and 7 of this act.

Sec. 5. Participating
local governmental agency means a county, school district, municipal
corporation, political subdivision, public corporation or other local
governmental agency that has an agreement in effect with the Program pursuant
to paragraph (a) of subsection 1 of NRS 287.025 to obtain group insurance from
the Program.

Sec. 6. Participating
public agency means any participating local governmental agency and
participating state agency.

Sec. 7. Participating
state agency means a department, commission, board, bureau or other agency of
the Executive, Legislative and Judicial Branches of State Government,
including, without limitation, the Public Employees Retirement System and the
University and Community College System of Nevada.

287.010 1. The governing body of any county, school
district, municipal corporation, political subdivision, public corporation or
other [public]local governmental agency of the State of
Nevada may:

(a) Adopt and carry into effect a system of group life,
accident or health insurance, or any combination thereof, for the benefit of
its officers and employees, and the dependents of officers and employees who
elect to accept the insurance and who, where necessary, have authorized the
governing body to make deductions from their compensation for the payment of
premiums on the insurance.

(b) Purchase group policies of life, accident or health
insurance, or any combination thereof, for the benefit of such officers and
employees, and the dependents of such officers and employees, as have
authorized the purchase, from insurance companies authorized to transact the
business of such insurance in the State of Nevada, and, where necessary, deduct
from the compensation of officers and employees the premiums upon insurance and
pay the deductions upon the premiums.

(c) Provide group life, accident or health coverage
through a self-insurance reserve fund and, where necessary, deduct
contributions to the maintenance of the fund from the compensation of officers
and employees and pay the deductions into the fund. The money accumulated for
this purpose through deductions from the compensation of officers and employees
and contributions of the governing body must be maintained as an internal
service fund as defined by NRS 354.543. The money must be deposited in a state
or national bank or credit union authorized to transact business in the State
of Nevada. Any independent administrator of a fund created under this section
is subject to the licensing requirements of chapter 683A of NRS, and must be a
resident of this state. Any contract with an independent administrator must be
approved by the Commissioner of Insurance as to the reasonableness of
administrative charges in relation to contributions collected and benefits
provided. The provisions of NRS 689B.030 to 689B.050, inclusive, and 689B.575
apply to coverage provided pursuant to this paragraph, except that the
provisions of NRS 689B.0359 do not apply to such coverage.

(d) Defray part or all of the cost of maintenance of a
self-insurance fund or of the premiums upon insurance. The money for
contributions must be budgeted for in accordance with the laws governing the
county, school district, municipal corporation, political subdivision, public
corporation or other [public]local governmental agency of the State of
Nevada.

2. If a school district offers group insurance to its
officers and employees pursuant to this section, members of the board of
trustees of the school district must not be excluded from participating in the
group insurance. If the amount of the deductions from compensation required to
pay for the group insurance exceeds the compensation to which a trustee is
entitled, the difference must be paid by the trustee.

Sec. 9. NRS 287.020 is hereby amended to read
as follows:

287.020 1. The governing body of any county, school
district, municipal corporation, political subdivision, public corporation or
other [public]local governmental agency of the State of
Nevada may adopt and carry into effect a system of medical or hospital service,
or a combination thereof, through nonprofit membership corporations defraying
the cost of medical service or hospital care, or both, open to participation by
all licentiates of the particular class , [(] whether
doctors of medicine, doctors of osteopathy or doctors of chiropractic , [)]
offering services through such a nonprofit membership corporation, for the
benefit of such of their officers and employees, and the dependents of such officers
and employees, as may elect to accept membership in such nonprofit corporation
and who have authorized the governing body to make deductions from their
compensation for the payment of membership dues.

licentiates of the particular class ,[(]whether doctors of
medicine, doctors of osteopathy or doctors of chiropractic , [)]
offering services through such a nonprofit membership corporation, for the
benefit of such of their officers and employees, and the dependents of such
officers and employees, as may elect to accept membership in such nonprofit
corporation and who have authorized the governing body to make deductions from
their compensation for the payment of membership dues.

2. A part, not to exceed 50 percent, of the cost of
such membership dues may be defrayed by such governing body by contribution.
The money for such contributions must be budgeted for in accordance with the
laws governing such county, school district, municipal corporation, political
subdivision, public corporation or other [public]local governmental agency
of the State of Nevada.

3. The power conferred in this section, with respect
to the rendition of medical or hospital service, or a combination thereof, is
coextensive with the power conferred in NRS 287.010 with respect to insurance
companies.

4. If a school district offers coverage for medical
service or hospital care, or both, to its officers and employees pursuant to
this section, members of the board of trustees of the school district must not
be excluded from participating in the coverage. If the amount of the deductions
from compensation required to pay for the coverage exceeds the compensation to
which a trustee is entitled, the difference must be paid by the trustee.

Sec. 10. NRS 287.021 is hereby amended to
read as follows:

287.021 1. Except as otherwise provided in subsection
3, the surviving spouse and any surviving child of a police officer or fireman
who was:

(a) Employed by a public agency that had established group
insurance or medical and hospital service pursuant to NRS 287.010, 287.020 or paragraph (b), (c) or (d) of subsection
1 of 287.025; and

(b) Killed in the line of duty,

may elect to accept or continue coverage under that group
insurance or medical and hospital service if the police officer or fireman was
a participant or would have been eligible to participate in the group insurance
or medical and hospital service on the date of the death of the police officer
or fireman. If the surviving spouse or child elects to accept coverage under
the group insurance or medical and hospital service in which the police officer
or fireman would have been eligible to participate or to discontinue coverage
under the group insurance or medical and hospital service in which the police
officer or fireman was a participant, the spouse, child or legal guardian of
the child must notify in writing the public agency that employed the police
officer or fireman within 60 days after the date of death of the police officer
or fireman.

2. The public agency that employed the police officer
or fireman shall pay the entire cost of the premiums or contributions for the
group insurance or medical and hospital service for the surviving spouse or
child who meets the requirements set forth in subsection 1.

3. A surviving spouse is eligible to receive coverage
pursuant to this section for the duration of the life of the surviving spouse.
A surviving child is eligible to receive coverage pursuant to this section
until the child reaches:

(a) The age of 18 years; or

(b) The age of 23 years, if the child is enrolled as a
full-time student in an accredited university, college or trade school.

4. As used in this section police officer has the
meaning ascribed to it in NRS 617.135.

Sec. 11. NRS 287.023 is hereby amended to
read as follows:

287.023 1. Whenever an officer or employee of the
governing body of any county, school district, municipal corporation, political
subdivision, public corporation or other [public]local governmental agency
of the State of Nevada retires under the conditions set forth in NRS 1A.350 or
1A.480, or 286.510 or 286.620 and, at the time of his retirement, was covered
or had his dependents covered by any group insurance or medical and hospital
service established pursuant to NRS 287.010 [and 287.020,], 287.020 or paragraph (b), (c) or
(d) of subsection 1 of NRS 287.025, the officer or employee has
the option upon retirement to cancel or continue any such group insurance or
medical and hospital service coverage or join the Public Employees Benefits
Program to the extent that such coverage is not provided to him or a dependent
by the Health Insurance for the Aged Act, 42 U.S.C. §§ 1395 et seq.

2. A retired person who continues coverage under the
Public Employees Benefits Program shall assume the portion of the premium or [membership]contribution costs
for the coverage continued which the governing body does not pay on behalf of
retired officers or employees. A person who joins the Public Employees
Benefits Program for the first time upon retirement shall assume all costs for
the coverage. A dependent of such a retired person has the option, which may be
exercised to the same extent and in the same manner as the retired person, to
cancel or continue coverage in effect on the date the retired person dies. The
dependent is not required to continue to receive retirement payments from the
Public Employees Retirement System to continue coverage.

3. [Except as otherwise provided in NRS 287.0235, notice]Notice of the
selection of the option must be given in writing to the last public employer of
the officer or employee within 60 days after the date of retirement or death,
as the case may be. If no notice is given by that date, the retired officer or employee and
his dependents shall be deemed to have selected the option to cancel the
coverage for the group insurance
or medical and hospital service established pursuant to NRS 287.010, 287.020 or
paragraph (b), (c) or (d) of subsection 1 of NRS 287.025 or not
to join the Public Employees Benefits Program, as the case may be.

4. The governing body of any county, school district,
municipal corporation, political subdivision, public corporation or other [public]local governmental agency
of this state may pay the cost, or any part of the cost, of group insurance and
medical and hospital service coverage provided pursuant to NRS 287.010, 287.020 or paragraph (b),
(c) or (d) of subsection 1 of NRS 287.025 for persons eligible
for that coverage pursuant to subsection 1, but it must not pay a greater
portion than it does for its current officers and employees.

Sec. 12. NRS 287.0235 is hereby amended to
read as follows:

287.0235 1. Notwithstanding the provisions of NRS
287.023 and 287.045, a person or the surviving spouse of a person who did not,
at the time of his retirement pursuant to the conditions set forth in NRS
1A.350 or 1A.480, or 286.510 or 286.620, have the option to participate in the
Public Employees Benefits Program may join the Public Employees Benefits
Program, to the extent that such coverage is not provided to him or a dependent by the Health Insurance for the Aged Act, 42 U.S.C.
§§ 1395 et seq.,

(a) Providing the Public Employees Retirement Board
with written notice of his intention to enroll in the Public Employees
Benefits Program during a period of open enrollment;

(b) [Showing evidence of his good health as a condition of
enrollment;

(c)]
Accepting the current plan of insurance of the Public Employees Benefits
Program and any subsequent changes to the plan; and

[(d)] (c) Paying any portion of the premiums or
contributions for the Program in the manner set forth in NRS 1A.470 or 286.615,
which are due after the date of enrollment.

The Public Employees Retirement Board shall, beginning on
September 1, 1997, have a biennial period of open enrollment between September
1 of each odd-numbered year and January 31 of each even-numbered year during
which eligible retired persons may join the Public Employees Benefits Program
pursuant to this section.

2. The Public Employees Retirement Board shall, on or
before September 1, 1997, and every September 1 of each odd-numbered year
thereafter, notify eligible retired persons described in subsection 1 of the
period of open enrollment by:

(a) Mailing a notice regarding the period of open
enrollment to all retired persons who are, according to its records, eligible
to join the Public Employees Benefits Program;

(b) Posting a notice of the period of open enrollment
at its principal office and at least three other separate prominent places,
such as a library, community center or courthouse; and

(c) Publicizing the period of open enrollment in any
other manner reasonably calculated to inform additional eligible retired
persons.

3. The Public Employees Retirement Board shall notify
the Board of the Public Employees Benefits Program of the enrollment of any
person on or before March 1 immediately following the period of open
enrollment. The Board of the Public Employees Benefits Program shall approve
or disapprove the request for enrollment within 90 days after receipt of the
request. Enrollment shall be deemed to occur on the day the request is
approved.

4. Enrollment in the Public Employees Benefits
Program pursuant to this section excludes claims for expenses for any condition
for which medical advice, treatment or consultation was rendered within 12
months before enrollment unless[:

(a) The
person has not received any medical advice, treatment or consultation for a
period of 6 consecutive months after enrollment; or

(b) The]the insurance
coverage has been in effect more than 12 consecutive months.

Sec. 13. NRS 287.024 is hereby amended to
read as follows:

287.024 1. If a member of the board of trustees of a
school district who has served at least one full term of office does not seek
reelection or is defeated for reelection and, upon the expiration of his term
of office, was covered or had his dependents covered by any group insurance or
medical and hospital service established pursuant to NRS 287.010 [and
287.020,],
287.020 or paragraph (b), (c) or (d) of subsection 1 of NRS 287.025, the
board member has the option upon the expiration of his term of office to cancel
or continue any such group insurance to the extent that such coverage is not provided to him or a dependent by the Health Insurance
for the Aged Act, 42 U.S.C. §§ 1395 et seq.

is not provided to him or a dependent by the Health Insurance
for the Aged Act, 42 U.S.C. §§ 1395 et seq. A board member who continues
coverage under the program of group insurance shall assume all costs for the
continued coverage. A dependent of such a board member has the option, which
may be exercised to the same extent and in the same manner as the board member,
to cancel or continue coverage in effect on the date the board member dies.

2. Notice of the selection of the option must be given
in writing to the board of trustees of the school district within 30 days after
the expiration of the board members term of office or the date of his death,
as the case may be. If no notice is given by that date, the board member and
his dependents shall be deemed to have selected the option to cancel the
coverage.

Sec. 14. NRS 287.025 is hereby amended to
read as follows:

287.025 1.
The governing body of any county, school district, municipal
corporation, political subdivision, public corporation or other [public]local governmental agency
of the State of Nevada may, in addition to the other powers granted in NRS
287.010 and 287.020:

[1.](a) Negotiate and contract with [any
other such agency or with] the Board of the Public
Employees Benefits Program to secure group insurance for its officers and
employees and their dependents by participation in [any group insurance plan
established or to be established or in] the Public Employees
Benefits Program. [Each such contract:

(a) Must be
submitted to the Commissioner of Insurance not less than 30 days before the
date on which the contract is to become effective for approval.

(b) Does
not become effective unless approved by the Commissioner.

(c) Shall
be deemed to be approved if not disapproved by the Commissioner of Insurance
within 30 days after its submission.

2.](b)Negotiate and contract with another
county, school district, municipal corporation, political subdivision, public
corporation or other local governmental agency of the State of Nevada to secure
group insurance for its officers and employees and their dependents by
participation in any group insurance plan established or to be established by
the other local governmental agency.

(c) To
secure group health, life or workers compensation insurance for its officers
and employees and their dependents, participate as a member of a nonprofit
cooperative association or nonprofit corporation that has been established in
this state to secure such insurance for its members from an insurer licensed
pursuant to the provisions of title 57 of NRS.

[3.](d) In addition to the provisions of [subsection
2,]paragraph
(c), participate as a member of a nonprofit cooperative
association or nonprofit corporation that has been established in this state
to:

[(a)] (1) Facilitate contractual arrangements for
the provision of medical services to its members officers and employees and
their dependents and for related administrative services.

[(b)] (2) Procure health-related information and
disseminate that information to its members officers and employees and their
dependents.

2. Each
contract negotiated pursuant to paragraph (a) or (b) of subsection 1:

(a) Must
be submitted to the Commissioner of Insurance for approval not less than 30
days before the date on which the contract is to become effective.

(b) Does
not become effective unless approved by the Commissioner of Insurance.

(c) Shall
be deemed to be approved if not disapproved by the Commissioner of Insurance
within 30 days after its submission.

Sec. 15. NRS 287.030 is hereby amended to
read as follows:

287.030 No provisions of law prohibiting, restricting
or limiting the assignment of or order for wages or salary shall be deemed in
any way to prohibit, restrict or limit the powers enumerated in NRS 287.010 [and
287.020,],
287.020 or 287.025 nor the right and power of officers or
employees to authorize and approve payment of premiums or contributions by wage
and salary deductions.

Sec. 16. NRS 287.040 is hereby amended to
read as follows:

287.040 The provisions of NRS 287.010 to 287.040,
inclusive, do not make it compulsory upon any governing body of any county,
school district, municipal corporation, political subdivision, public corporation
or other [public]local governmental agency of the State of
Nevada to, except as otherwise provided in NRS 287.021, make any contributions
for the payment of any premiums or other costs for group insurance or medical
or hospital services, or upon any officer or employee of any county, school
district, municipal corporation, political subdivision, public corporation or
other [public agency]local governmental agency of this state to
accept or join any plan of group insurance or to assign his wages or salary [or
to authorize deductions from his wages or salary] in
payment of premiums or contributions therefor.

Sec. 17. NRS 287.0402 is hereby amended to
read as follows:

287.0402 As used in NRS 287.0402 to 287.049,
inclusive, and sections 5, 6 and 7
of this act, unless the context otherwise requires, the words and
terms defined in NRS 287.0404 and 287.0406 and sections 5, 6 and 7 of this act have the
meanings ascribed to them in those sections.

Sec. 18. NRS 287.043 is hereby amended to
read as follows:

287.043 1. The Board shall:

(a) Establish and carry out a program to be known as
the Public Employees Benefits Program which:

(1) Must include a program relating to group
life, accident or health insurance, or any combination of these; and

(2) May include a program to reduce taxable
compensation or other forms of compensation other than deferred compensation,

for the benefit of all state officers and employees and other
persons who participate in the Program.

(b) Ensure that the Program is funded on an
actuarially sound basis and operated in accordance with sound insurance and
business practices.

2. In establishing and carrying out the Program, the
Board shall:

(a) For the purpose of establishing actuarial data to
determine rates and coverage for active and retired state officers and
employees and their dependents, commingle the claims experience of such active
and retired officers and employees and their dependents.

(b) Except as otherwise provided in this paragraph,
negotiate and contract pursuant to
paragraph (a) of subsection 1 of NRS 287.025 with the governing
body of any [public agency enumerated in NRS 287.010]county, school district, municipal
corporation, political subdivision, public corporation or other local
governmental agency of the State of Nevada that wishes to obtain
group insurance for its active and
retired officers[, employees and retired] and employees and their dependents by
participation in the Program.

employees and
retired]and employees
and their dependents by
participation in the Program. The Board shall establish separate rates and
coverage for those active and
retired officers[,
employees and retired] and employees and their dependents based on actuarial
reports.

(c) Except as otherwise provided in paragraph (d),
provide public notice in writing of any proposed changes in rates or coverage
to each participating public [employer who]agency that may be affected by the changes.
Notice must be provided at least 30 days before the effective date of the
changes.

(d) If a proposed change is a change in the premium or contribution charged
for , or coverage of
, health insurance,
provide written notice of the proposed change to all [state officers,
employees, retired employees and other persons who participate in the Program
who may be affected by the proposed change.]participating active and retired public
officers and employees. The notice must be provided at least 60
days before the date [a state officer, employee, retired employee or other person]on which a participating active or
retired public officer or employee is required to select or
change his policy of health insurance.

(e) Purchase policies of life, accident or health
insurance, or any combination of these, or, if applicable, a program to reduce
the amount of taxable compensation pursuant to 26 U.S.C. § 125, from any
company qualified to do business in this state or provide similar coverage
through a plan of self-insurance established pursuant to NRS 287.0433 for the
benefit of all eligible active and
retired public officers[, employees and retired]and employees who
participate in the Program.

(f) Except as otherwise provided in this title, develop
and establish other employee benefits as necessary.

(g) Investigate and approve or disapprove any contract
proposed pursuant to NRS 287.0479.

(h) Adopt such regulations and perform such other
duties as are necessary to carry out the provisions of NRS 287.0402 to 287.049,
inclusive, and sections 5, 6 and 7
of this act, including, without limitation, the establishment of:

(1) Fees for applications for participation in
the Program and for the late payment of premiums or contributions;

(2) Conditions for entry and reentry into the
Program by [public agencies enumerated in NRS 287.010;] local governmental agencies that wish
to enter or reenter the Program pursuant to paragraph (a) of subsection 1 of
NRS 287.025;

(3) The levels of participation in the Program
required for officers and employees
of participating public agencies;

(4) Procedures by which a group of participants
in the Program may leave the Program pursuant to NRS 287.0479 and conditions
and procedures for reentry into the Program by those participants; and

(5) Specific procedures for the determination of
contested claims.

(i) Appoint an independent certified public accountant.
The accountant shall:

(1) Provide an annual audit of the Program; and

(2) Report to the Board and the Interim
Retirement and Benefits Committee of the Legislature created pursuant to NRS
218.5373.

(j) Appoint an attorney who specializes in employee
benefits. The attorney shall:

(1) Perform a biennial review of the Program to
determine whether the Program complies with federal and state laws relating to
taxes and employee benefits; and

(2) Report to the Board and the Interim
Retirement and Benefits Committee of the Legislature created pursuant to NRS
218.5373.

3. The Board shall submit an annual report regarding
the administration and operation of the Program to the Director of the Legislative
Counsel Bureau not more than 6 months before the Board establishes rates and
coverage for members for the following [calendar]plan year. The
report must include, without limitation:

(a) The amount paid by the Program in the preceding [calendar]plan year for the
claims of active and retired state officers and employees[;]who participated in the Program; and

(b) The amount paid by the Program in the preceding [calendar]plan year for the
claims of retired members of the Program who were provided coverage for medical
or hospital service, or both, by the Health Insurance for the Aged Act, 42
U.S.C. §§ 1395 et seq., or a plan that provides similar coverage.

4. The Board may use any services provided to state
agencies and shall use the services of the Purchasing Division of the
Department of Administration to establish and carry out the Program.

5. The Board may make recommendations to the
Legislature concerning legislation that it deems necessary and appropriate
regarding the Program.

6. [The State and any other public employers that participate in
the Program are]A participating public agency is not liable
for any obligation of the Program other than indemnification of the Board and
its employees against liability relating to the administration of the Program,
subject to the limitations specified in NRS 41.0349.

7. As used in this section, employee benefits
includes any form of compensation provided to a public employee except federal
benefits, wages earned, legal holidays, deferred compensation and benefits
available pursuant to chapter 286 of NRS.

Sec. 19. NRS 287.0434 is hereby amended to
read as follows:

287.0434 The Board may:

1. Use its assets to pay the expenses of health care
for its members and covered dependents, to pay its employees salaries and to
pay administrative and other expenses.

2. Enter into contracts relating to the administration
of the Program, including, without limitation, contracts with licensed
administrators and qualified actuaries. Each such contract with a licensed
administrator:

(a) Must be submitted to the Commissioner of Insurance
not less than 30 days before the date on which the contract is to become
effective for approval as to the reasonableness of administrative charges in
relation to contributions collected and benefits provided.

(b) Does not become effective unless approved by the
Commissioner.

(c) Shall be deemed to be approved if not disapproved
by the Commissioner [of Insurance] within 30 days after its
submission.

3. Enter into contracts with physicians, surgeons,
hospitals, health maintenance organizations and rehabilitative facilities for
medical, surgical and rehabilitative care and the evaluation, treatment and
nursing care of members and covered dependents.

members and covered dependents. The Board shall not enter
into a contract pursuant to this subsection unless:

(a) Provision is made by the Board to offer all the
services specified in the request for proposals, either by a health maintenance
organization or through separate action of the Board.

(b) The rates set forth in the contract are based on
the commingled claims experience of active and retired state officers and
employees and their dependents.

4. Enter into contracts for the services of other
experts and specialists as required by the Program.

5. Charge and collect from an insurer, health
maintenance organization, organization for dental care or nonprofit medical
service corporation, a fee for the actual expenses incurred by the Board[, the State]
or a participating public [employer]agency in administering a plan of insurance
offered by that insurer, organization or corporation.

Sec. 20. NRS 287.0439 is hereby amended to
read as follows:

287.0439 1. A participating public [employer
shall, on request,]agency shall furnish to the Board [any]:

(a) Written
notice regarding a change in the status of an employee of the participating public
agency or a dependent of such an employee that affects the eligibility of the
employee or dependent to participate in the Program. Such notice must be
provided to the Program, on a form prescribed by the Program, within 15
calendar days after the participating public agency is notified or otherwise
becomes aware of the change in status.

(b) Upon
request, any other information necessary to carry out the
provisions of this chapter.

2. Members
of the Board and its employees or agents may examine under oath any officer,
agent or employee of a participating public [employer]agency concerning the
information[.

2.] required pursuant to this section.

3.
The books, records and payrolls of a participating public [employer]agency must be
available for inspection by members of the Board and its employees and agents
to obtain any information necessary for the administration of the Program,
including, without limitation, the accuracy of the payroll and identity of
employees.

4. A
participating public agency shall reimburse the Program for any premium or
contribution that was not paid to the Program as a result of the failure of the
participating public agency to furnish the notice required pursuant to
paragraph (a) of subsection 1. The participating public agency shall not
require any employee or his dependent to reimburse the participating public
agency for the amount of any premium or contribution for which the
participating public agency is liable to the Program pursuant to this
subsection.

Sec. 21. NRS 287.044 is hereby amended to
read as follows:

287.044 1. A part of the cost of the premiums or
contributions for [that] group insurance[,]provided by the Program, not
to exceed the amount specified by law, applied to both group life and group
accident or health coverage, for each [public]state officer,
except a Senator or Assemblyman, or employee electing to participate in the
Program, may be paid by the [department, agency, commission or public]participating state agency
which employs the officer or employee in whose behalf that part is paid from money appropriated to or authorized for that [department,
agency, commission or public] participating state agency for that purpose.

money appropriated to or authorized for that [department,
agency, commission or public]participating state agency for that purpose.
Participation by the State in the cost of premiums or contributions must not
exceed the amounts specified by law. If [an]a state officer or
employee chooses to cover his dependents, whenever this option is made
available by the Board, except as otherwise provided in NRS 287.021 and
287.0477, he must pay the difference between the amount of the premium or
contribution for the coverage for himself and his dependents and the amount
paid by the [State.] participating state agency that employs the officer or
employee.

2. A [department, agency, commission or public]participating state agency
shall not pay any part of those premiums or contributions if the group life
insurance or group accident or health insurance is not approved by the Board.

Sec. 22. NRS 287.0445 is hereby amended to
read as follows:

287.0445 The [department, agency,
commission or public]participating state agency which employed [an]a state officer or
employee who:

1. Was injured in the course of that employment;

2. Receives compensation for a temporary total
disability pursuant to NRS 616C.475; and

3. Was a member of the Program at the time of the
injury,

shall pay the States share of the cost of the premiums or
contributions for the Program for that officer or employee for not more than 9
months after the injury or until the officer or employee is able to return to
work, whichever is less. If the previous injury recurs within 1 month after the
employee returns to work and the employee again receives compensation pursuant
to NRS 616C.475 as a result of the previous injury, the [department, agency,
commission or public]participating state agency shall not, except
as otherwise provided in this subsection, pay the states share of the cost of
the premiums or contributions for the period during which the employee is
unable to work as a result of the recurring previous injury. If the initial
period of disability was less than 9 months, the [department, agency,
commission or public]participating state agency shall pay, during
the recurrence, the States share of the costs of the premiums or contributions
for a period which, when added to the initial period, equals not more than 9
months.

Sec. 23. NRS 287.045 is hereby amended to
read as follows:

287.045 1. Except as otherwise provided in this
section, every state officer
or employee [of the State] is eligible to participate
in the Program on the first day of the month following the completion of 90
days of full-time employment.

2. Professional employees of the University and
Community College System of Nevada who have annual employment contracts are
eligible to participate in the Program on:

(a) The effective dates of their respective employment
contracts, if those dates are on the first day of a month; or

(b) The first day of the month following the effective
dates of their respective employment contracts, if those dates are not on the
first day of a month.

3. Every officer or employee who is employed by a
participating [public]local governmental agency on a permanent and
full-time basis on the date on
which the participating
local governmental agency enters into an
agreement to participate in the Program [,] pursuant to paragraph (a) of
subsection 1 of NRS 287.025, and every officer or employee who commences his
employment with that participating local governmental agency after that date is
eligible to participate in the Program on the first day of the month following
the completion of 90 days of full-time employment.

an agreement to participate in the Program[,]pursuant to paragraph (a) of subsection
1 of NRS 287.025, and every officer or employee who commences his
employment with that participating
local governmental agency after that date is eligible to
participate in the Program on the first day of the month following the
completion of 90 days of full-time employment.

4. Every Senator and Assemblyman is eligible to
participate in the Program on the first day of the month following the 90th day
after his initial term of office begins.

5. An officer or employee of the governing body of any
county, school district, municipal corporation, political subdivision, public
corporation or other [public]local governmental agency of the State of
Nevada who retires under the conditions set forth in NRS 1A.350 or 1A.480, or
286.510 or 286.620 and was not participating in the Program at the time of his
retirement is eligible to participate in the Program 60 days after notice of
the selection to participate is given pursuant to NRS 287.023 .[or 287.0235.]
The Board shall make a separate accounting for these retired persons. For the
first year following enrollment, the rates charged must be the full actuarial
costs determined by the actuary based upon the expected claims experience with
these retired persons. The claims experience of these retired persons must not
be commingled with the retired persons who [were members of]participated in the
Program before their retirement, nor with active state officers and employees [of
the State.]who
participate in the Program. After the first year following
enrollment, the rates charged must be the full actuarial costs determined by
the actuary based upon the past claims experience of these retired persons
since enrolling.

6. Notwithstanding the provisions of subsections 1, 3
and 4, if the Board does not, pursuant to NRS 689B.580, elect to exclude the
Program from compliance with NRS 689B.340 to 689B.590, inclusive, and if the
coverage under the Program is provided by a health maintenance organization
authorized to transact insurance in this state pursuant to chapter 695C of NRS,
any affiliation period imposed by the Program may not exceed the statutory
limit for an affiliation period set forth in NRS 689B.500.

Sec. 24. NRS 287.046 is hereby amended to
read as follows:

287.046 1. Except as otherwise provided in subsection
6, any active state [or
other participating] officer or employee who elects to
participate in the Program may participate, and the [department, agency,
commission or public]participating state agency that employs the
officer or employee shall pay the States share of the cost of the premiums or
contributions for the program from money appropriated or authorized as provided
in NRS 287.044. [Employees]State officers and employees who elect to
participate in the Program must authorize deductions from their compensation
for the payment of premiums or contributions for the Program. Any deduction
from the compensation of [an]a state officer or employee for the payment of
a premium or contribution for
health insurance must be based on the actual cost of providing that health
insurance after deducting any amount of the premium or contribution which is paid by the [department,
agency, commission or public]participating state agency that employs the
employee. As used in this subsection, actual cost includes any amount which
has been approved by the Board and which is paid by any [department, agency,
commission or public agency of this state]participating state agency for:

(b) Subsidization of premiums or contributions for health insurance for
dependents and retired participants;

(c) Administrative costs relating to the provision of
the health insurance; and

(d) Costs required to maintain adequate reserves.

2. The Department of Personnel shall pay a percentage
of the base amount provided by law for that fiscal year toward the cost of the
premiums or contributions for the Program for persons who have retired [from the service of the
State who have continued]with state service and who elect to
participate in the Program. Except as otherwise provided in subsection 3, the
percentage to be paid must be calculated as follows:

(a) For those persons who retire before January 1,
1994, 100 percent of the base amount provided by law for that fiscal year.

(b) For those persons who retire on or after January 1,
1994, with at least 5 years of state service, 25 percent plus an additional 7.5
percent for each year of state service
in excess of 5 years to a maximum of 137.5 percent, excluding service purchased
pursuant to NRS 1A.310 or 286.300, of the base amount provided by law for that
fiscal year.

3. If the amount calculated pursuant to subsection 2
exceeds the actual premium or contribution for the plan of the Program that the
retired participant selects, the balance must be credited to the Fund for the
Public Employees Benefits Program created pursuant to NRS 287.0435.

4. For the purposes of subsection 2:

(a) Credit for service must be calculated in the manner
provided by chapter 286 of NRS.

(b) No proration may be made for a partial year of state service.

5. The Department shall agree through the Board with
the insurer for billing of remaining premiums or contributions for the retired
participant and his dependents to the retired participant and to his dependents
who elect to continue coverage under the Program after his death.

6. A Senator or Assemblyman who elects to participate
in the Program shall pay the entire premium or contribution for his insurance.

Sec. 25. NRS 287.047 is hereby amended to
read as follows:

287.047 If the retention is consistent with the terms
of any agreement between the State and the insurance company which issued the
policies pursuant to the Program or with the plan of self-insurance of the
Program:

1. A participating state officer or employee who retires on or after
July 1, 1985, may retain his membership in and his dependents coverage by the
Program.

2. A participating Legislator who retires from the
service of the State or who completes 8 years of service as such may retain his
membership in and his dependents coverage by the Program.

Sec. 26. NRS 287.0475 is hereby amended to
read as follows:

287.0475 1. A public officer or employee who has retired pursuant
to NRS 1A.350 or 1A.480, or 286.510 or 286.620, or a retirement program
provided pursuant to NRS 286.802, or the surviving spouse of such a retired
public officer or employee
who is deceased may, in any even-numbered year, reinstate any insurance, except
life insurance, which was provided to him and his dependents at the time of his
retirement pursuant to NRS 287.010
,[or] 287.020 or 287.025 or the program as a public officer or employee by:

(a) Giving written notice of his intent to reinstate
the insurance to the [employees] last public employer of the public officer or employee not
later than January 31, of an even-numbered year;

(b) Accepting the public employers current program or
plan of insurance and any subsequent changes thereto; and

(c) Paying any portion of the premiums or contributions
of the public employers program or plan of insurance, in the manner set forth
in NRS 1A.470 or 286.615, which are due from the date of reinstatement and not
paid by the public employer.

The last public employer shall give the insurer notice of the
reinstatement no later than March 31[,] of the year in which the public officer or employee or
surviving spouse gives notice of his intent to reinstate the insurance. The
insurer shall approve or disapprove the request for reinstatement within 90
days after the date of the request.

2. Reinstatement of insurance excludes claims for
expenses for any condition for which medical advice, treatment or consultation
was rendered within [6]12 months before reinstatement unless[:

(a) The
person has not received any medical advice, treatment or consultation for a
period of 6 consecutive months after the reinstatement; or

(b) The]the reinstated
insurance has been in effect more than 12 consecutive months.

Sec. 27. NRS 287.0479 is hereby amended to
read as follows:

287.0479 1. If approved by the Board pursuant to this
section, a group of not less than 300 active state officers[,]or employees or retired state officers or employees,
or any combination thereof, that participate in the Program may leave the Program
and secure life, accident or health insurance, or any combination thereof, for
the group from an:

(a) Insurer that is authorized by the Commissioner of
Insurance to provide such insurance; or

(b) Employee benefit plan, as defined in 29 U.S.C. § 1002(3),
that has been approved by the Board. The Board may approve an employee benefit
plan unless the Board finds that the plan is not operated pursuant to such
sound accounting and financial management practices as to ensure that the group
will continue to receive adequate benefits.

2. Before entering into a contract with the insurer or
approved employee benefit plan, the group shall submit the proposed contract to
the Board for approval. The Board may approve the contract unless the departure
of the group from the Program would cause an increase of more than 5 percent in
the costs of premiums or contributions for the remaining participants in the
Program. In determining whether to approve a proposed contract, the Board shall
follow the criteria set forth in the regulations adopted by the Board pursuant
to subsection 4 and may consider the cumulative impact of groups that have left
or are proposing to leave the Program. Except as otherwise provided in this
section, the Board has discretion in determining whether to approve a contract.
If the Board approves a proposed contract pursuant to this subsection, the
group that submitted the proposed contract is not authorized to leave the
Program until 120 days after the date on which the Board approves the proposed
contract.

3. The Board shall disburse periodically to the
insurer or employee benefit plan with which a group contracts pursuant to this
section the total amount set forth in the contract for premiums or
contributions for the members of the group for that period but not to exceed
the amount appropriated to or authorized for the
[department, agency, commission or public] participating state agency that
employs the members of the group for premiums or contributions for the members
of the group for that period, after deducting any administrative costs related
to the group.

appropriated to or authorized for the [department, agency,
commission or public]participating state agency that employs the
members of the group for premiums or contributions for the members of the group
for that period, after deducting any administrative costs related to the group.

4. The Board shall adopt regulations establishing the
criteria pursuant to which the Board will approve proposed contracts pursuant
to subsection 2.

Sec. 28. NRS 287.048 is hereby amended to
read as follows:

287.048 NRS 287.0402 to 287.047, inclusive, do not
require any officer or employee of the State of Nevada to accept or join the
Program, or to assign his wages or salary [to or authorize
deductions from his wages or salary] in payment of
premiums or contributions for the Program.

Sec. 29. NRS 1A.470 is hereby amended to read
as follows:

1A.470 1. In addition to the options provided in NRS
287.023 and subject to the requirements of that section, any justice of the
Supreme Court or district judge who retires under the conditions set forth in
NRS 1A.350 and, at the time of his retirement, was covered or had his
dependents covered by any group insurance or medical and hospital service
established pursuant to NRS 287.010 [and 287.020,], 287.020 or paragraph (b), (c) or
(d) of subsection 1 of NRS 287.025, has the option of having the
Executive Officer of the Board deduct and pay his premium or contribution for
that group insurance or medical and hospital service coverage, as well as the
amount due or to become due upon any obligation designated by the Board pursuant
to subsection 2, from his monthly retirement allowance until:

(a) He notifies the Executive Officer of the Board to
discontinue the deduction; or

(b) Any of his dependents elect to assume the premium
or contribution applicable to the dependents coverage before the death of such
a retired justice or judge and continue coverage pursuant to NRS 287.023 after
his death.

2. The Board may adopt regulations to carry out the
provisions of subsection 1, including, without limitation, regulations
governing the number and types of obligations, amounts for the payment of which
may be deducted and paid by the Board at the option of the retired justice or
judge pursuant to this section.

3. The Executive Officer of the Board, the Board and
the System are not liable for any damages resulting from errors or omissions
concerning the deductions and payment of premiums or contributions authorized
pursuant to this section unless willful neglect or gross negligence is proven.

Sec. 30. NRS 218.6853 is hereby amended to
read as follows:

218.6853 1. The Chief of the Administrative Division
is ex officio Legislative Fiscal Officer. As such Officer, he shall keep a
complete, accurate and adequate set of accounting records and reports for all
legislative operations, including any records and reports required by the
Federal Government for the administration of federal revenue and income tax
laws.

2. The Chief shall withhold from the pay of each
Legislator, employee of the Legislature and employee of the Legislative Counsel
Bureau the amount of tax specified by the Federal Government and shall transmit
the amount deducted to the Internal Revenue Service of the United States
Department of the Treasury.

3. The
Chief shall, upon receipt of information from the Public Employees Benefits
Program specifying amounts of premiums or contributions for coverage by the
Program, withhold from the pay of each employee
of the Legislature and employee of the Legislative Counsel Bureau who
participates in the Public Employees Benefits Program those amounts and pay
those amounts to the Program.

employee of the
Legislature and employee of the Legislative Counsel Bureau who participates in
the Public Employees Benefits Program those amounts and pay those amounts to
the Program.

4. The
Chief may provide for the purchase of United States savings bonds or similar
United States obligations by salary deduction for any Legislator, legislative
employee or employee of the Legislative Counsel Bureau who submits a written
request for these deductions and purchases. The Chief shall provide forms
authorizing deductions for and purchases of these United States obligations.

[4.] 5. The Chief may withhold from the pay of a
Legislator, employee of the Legislature or employee of the Legislative Counsel
Bureau such amount as the claimant specifies in writing for payment to his
credit union. Any money which is withheld must be transmitted by the Chief in
accordance with the claimants written instructions. The Chief may adopt
regulations necessary to carry out the provisions of this subsection.

Sec. 33. 1. This section and sections 1 to 10,
inclusive, 12 to 22, inclusive, and 25 to 31, inclusive, of this act become
effective on July 1, 2003.

2. Sections 11, 23, 24 and 32 of this act become effective on
July 1, 2004.

________

κ2003
Statutes of Nevada, Page 3275κ

CHAPTER 495, AB 453

Assembly Bill No. 453Committee on Commerce and Labor

CHAPTER 495

AN ACT relating to
insurance; expanding the authority of the Commissioner of Insurance to enter
into cooperative agreements and to share certain information; authorizing the
Commissioner to examine the accounts, records, documents and transactions of an
external review organization for certain purposes; revising the requirements
for a person to act as a broker for reinsurance; authorizing an insurance
consultant to qualify for a license in certain lines of authority; increasing
the amount of surplus required to accept surplus lines; requiring an essential
insurance association to qualify as a domestic mutual insurer if requested to
do so by the Commissioner; clarifying that underinsured vehicle coverage
includes coverage for certain damages to the extent those damages exceed a
limitation of liability for a governmental agency; revising the amount of money
that the Nevada Insurance Guaranty Association and the Nevada Life and Health
Insurance Guaranty Association are obligated to pay for a covered claim;
requiring an insurer that issues a policy of insurance covering the liability
of certain physicians to submit a report to the Commissioner within a certain
period after closing a claim under the policy; revising the order of
distribution of certain claims from the estate of an insurer on liquidation of
the insurer; prohibiting a bail agent from acting as an attorney-in-fact for an
insurer on an undertaking unless the bail agent registers in the office of the
sheriff and with the clerk of the district court in which the bail agent
resides; requiring a member of an association of self-insured public or private
employers to include certain information in a notice of intent to withdraw from
the association; providing penalties; and providing other matters properly
relating thereto.

[Approved: June 11, 2003]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1.Chapter 679B of NRS is hereby
amended by adding thereto a new section to read as follows:

1. In addition
to the authority conferred upon him pursuant to NRS 679B.120, the Commissioner
may:

(a) Enter into
and comply with any cooperative or coordination agreement with any governmental
entity within or outside this state relating to the regulation and
administration of insurance and persons who are materially involved in the
business of insurance;

(b) Share any
document, material or other information, including any document, material or
information that is confidential or privileged, with any state, federal or
international regulatory, law enforcement or legislative agency, and the
National Association of Insurance Commissioners and any of its affiliates or
subsidiaries, if the recipient of the document, material or other information
agrees:

(1) To
ensure that the document, material or other information remains confidential
and privileged; and

(2) To
submit to the jurisdiction of the courts of this state if the recipient violates
a provision of subparagraph (1); and

(c) Receive any
document, material or other information from any agency, association, affiliate
or subsidiary specified in paragraph (b). The Commissioner shall ensure that
any document, material or information received pursuant to this paragraph
remains confidential if the document, material or information is provided to
the Commissioner with a notice or the understanding that it is confidential or
privileged under the laws of the jurisdiction from which it is submitted.

2. The sharing
or receipt of any document, material or other information by the Commissioner
pursuant to this section does not waive any applicable privilege or claim of
confidentiality in the document, material or other information.

Sec. 2. NRS 679B.130 is hereby amended to
read as follows:

679B.130 1. The Commissioner may adopt reasonable
regulations [for]:

(a) For the
administration of any provision of this Code, NRS 287.04335 or chapters 616A to
617, inclusive, of NRS[.] ; or

(b) As required
to ensure compliance by the Commissioner with any federal law or regulation
relating to insurance.

2. A person who willfully violates any regulation of
the Commissioner is subject to such suspension or revocation of a certificate
of authority or license, or administrative fine in lieu of such suspension or
revocation, as may be applicable under this Code or chapter 616A, 616B, 616C,
616D or 617 of NRS for violation of the provision to which the regulation
relates. No penalty applies to any act done or omitted in good faith in
conformity with any such regulation, notwithstanding that the regulation may,
after the act or omission, be amended, rescinded or determined by a judicial or
other authority to be invalid for any reason.

Sec. 3. NRS 679B.144 is hereby amended to
read as follows:

679B.144 1. The Commissioner shall collect and
maintain the information
provided by insurers pursuant to
NRS 690B.050 regarding each closed claim for medical malpractice
filed against [physicians and surgeons]a person who is covered by a policy of
insurance for medical malpractice in this state, including,
without limitation:

(a) The cause of the loss;

(b) A description of the injury for which the claim was
filed;

(c) The sex of the injured person;

(d) The names and number of defendants in each claim;

(e) The type of coverage provided;

(f) The amount of the initial, highest and last
reserves of an insurer for each claim before final resolution of the claim by
settlement or trial;

(g) The disposition of each claim;

(h) The amount of money awarded through settlement or
by verdict;

(i) The sum of money paid to each claimant and the
source of that sum; [and]

(j) Any sum of money allocated to expenses for the
adjustment of losses[.] ; and

(k) Any
other information the Commissioner determines to be necessary or appropriate.

2. The Commissioner shall submit with his report to
the Legislature required pursuant to NRS 679B.410[,] a
summary of the information collected pursuant to this section.

3. The Commissioner shall adopt regulations necessary
to carry out the provisions of this section.

4. As
used in this section, policy of insurance for medical malpractice means a
policy that provides coverage for any medical professional liability of the
insured under the policy.

Sec. 3.3. NRS 679B.240 is hereby amended to
read as follows:

679B.240 To ascertain compliance with law, or
relationships and transactions between any person and any insurer or proposed
insurer, the Commissioner may, as often as he deems advisable, examine the
accounts, records, documents and transactions relating to such compliance or
relationships of:

1. Any insurance agent, solicitor, broker, surplus
lines broker, general agent, adjuster, insurer representative, bail agent,
motor club agent or any other licensee or any other person the Commissioner has
reason to believe may be acting as or holding himself out as any of the
foregoing.

2. Any person having a contract under which he enjoys
in fact the exclusive or dominant right to manage or control an insurer.

3. Any insurance holding company or other person
holding the shares of voting stock or the proxies of policyholders of a
domestic insurer, to control the management thereof, as voting trustee or
otherwise.

4. Any subsidiary of the insurer.

5. Any person engaged in this state in, or proposing
to be engaged in this state in, or holding himself out in this state as so
engaging or proposing, or in this state assisting in, the promotion, formation
or financing of an insurer or insurance holding corporation, or corporation or
other group to finance an insurer or the production of its business.

6. Any
external review organization, as defined in section 19 of Assembly Bill No. 79
of this session.

Sec. 3.7.NRS 679B.290 is hereby
amended to read as follows:

679B.290 1. Except as otherwise provided in
subsection 2:

(a) The expense of examination of an insurer, or of any
person referred to in subsection 1, 2 , [or]
5 or 6 of NRS
679B.240, must be borne by the person examined. Such expense includes only the
reasonable and proper hotel and travel expenses of the Commissioner and his
examiners and assistants, including expert assistance, reasonable compensation
as to such examiners and assistants and incidental expenses as necessarily
incurred in the examination. As to expense and compensation involved in any
such examination the Commissioner shall give due consideration to scales and
limitations recommended by the National Association of Insurance Commissioners
and outlined in the examination manual sponsored by that association.

(b) The person examined shall promptly pay to the
Commissioner the expenses of the examination upon presentation by the
Commissioner of a reasonably detailed written statement thereof.

2. The Commissioner may bill an insurer for the examination
of any person referred to in subsection 1 of NRS 679B.240 and shall adopt regulations
governing such billings.

(e) In
addition to any information provided pursuant to subparagraph (2) of paragraph
(b) or NRS 690B.050, a policy of insurance for medical malpractice. As used in
this paragraph, policy of insurance for medical malpractice has the meaning
ascribed to it in NRS 679B.144.

2. The Commissioner may require that the report
include, without limitation, information specifically pertaining to this state or
to an insurer in its entirety, in the aggregate or by type of insurance, and
for a previous or current year, regarding:

(i) Expenses for adjustment of losses, including
allocated and unallocated losses;

(j) Net underwriting gain or loss;

(k) Net operation gain or loss, including net
investment income; and

(l) Any other information requested by the
Commissioner.

3. The Commissioner may also obtain, based upon an
insurer in its entirety, information regarding:

(a) Recoverable federal income tax;

(b) Net unrealized capital gain or loss; and

(c) All other expenses not included in subsection 2.

Sec. 5. NRS 679B.460 is hereby amended to
read as follows:

679B.460 1. An insurer who willfully or repeatedly
violates or fails to comply with a provision of NRS 679B.400 to 679B.450,
inclusive, or 690B.050 or a
regulation adopted pursuant to NRS 679B.430 is subject, after notice and a hearing held pursuant to
NRS 679B.310 to 679B.370, inclusive, to payment of an administrative fine of
not more than $1,000 for each day of the violation or failure to comply, up to
a maximum fine of $50,000.

2. An insurer who fails or refuses to comply with an
order issued by the Commissioner pursuant to NRS 679B.430 is subject, after
notice and a hearing
held pursuant to NRS 679B.310 to 679B.370, inclusive, to suspension or
revocation of his certificate of authority to transact insurance in this state.

3. The imposition of an administrative fine pursuant
to this section must not be considered by the Commissioner in any other
administrative proceeding unless the fine has been paid or a court order for
payment of the fine has become final.

Sec. 6. NRS 680A.270 is hereby amended to
read as follows:

680A.270 1. Each authorized insurer shall annually on
or before March 1, or within any reasonable extension of time therefor which
the Commissioner for good cause may have granted on or before that date, file
with the Commissioner a full and true statement of its financial condition,
transactions and affairs as of December 31 preceding. The statement must be [in]:

(a) In the
general form and context of, and require information as called for by, [the
form of]an annual
statement as is currently
in general and customary use in the United States for the type of insurer and
kinds of insurance to be reported upon, with any useful or necessary
modification or adaptation thereof, supplemented by additional information
required by the Commissioner[.
The statement must be verified];

(b) Prepared
in accordance with:

(1)
The Annual Statement Instructions for the type of insurer to be reported
on as adopted by the National Association of Insurance Commissioners for the
year in which the insurer files the statement; and

(2)
The Accounting Practices and Procedures Manual adopted by the National
Association of Insurance Commissioners and effective on January 1, 2001, and as
amended by the National Association of Insurance Commissioners after that date;
and

(c) Verified
by the oath of the insurers president or vice president and
secretary or actuary, as applicable, or, in the absence of the foregoing, by
two other principal officers, or if a reciprocal insurer, by the oath of the
attorney-in-fact, or its like officers if a corporation.

2. The statement of an alien insurer must be verified
by its United States manager or other officer [duly authorized,]who is authorized to do so, and
may relate only to the insurers transactions and affairs in the United States
unless the Commissioner requires otherwise. If the Commissioner requires a
statement as to [such an]the insurers affairs throughout the world,
the insurer shall file the statement with the Commissioner as soon as
reasonably possible.

3. The Commissioner may refuse to continue, or may
suspend or revoke, the certificate of authority of any insurer failing to file
its annual statement when due.

4. At the time of filing, the insurer shall pay the
fee for filing its annual statement as prescribed by NRS 680B.010.

5. The Commissioner may adopt regulations requiring
each domestic, foreign and alien insurer which is authorized to transact
insurance in this state to file the insurers annual statement with the
National Association of Insurance Commissioners or its successor organization.

6. All ratios of financial analyses and synopses of
examinations concerning insurers that are submitted to the Division by the
National Association of Insurance Commissioners Insurance Regulatory
Information System are confidential and may not be disclosed by the Division.

Sec. 7. NRS 680B.010 is hereby amended to
read as follows:

680B.010 The Commissioner shall collect in advance and
receipt for, and persons so served must pay to the Commissioner, fees and
miscellaneous charges as follows:

(e) Registration of
additional title pursuant to NRS 680A.240................. 50

(f) Annual renewal of the
registration of additional title pursuant to NRS 680A.240 25

2. Charter documents, other
than those filed with an application for a certificate of authority. Filing
amendments to articles of incorporation, charter, bylaws, power of attorney and
other constituent documents of the insurer, each document $10

16. For copies of the
insurance laws of Nevada, a fee which is not less than the cost of producing
the copies.

17. Certified copies of
certificates of authority and licenses issued pursuant to the Insurance Code $10

18. For copies and
amendments of documents on file in the Division, a reasonable charge fixed by
the Commissioner, including charges for duplicating or amending the forms and
for certifying the copies and affixing the official seal.

19. Letter of clearance for
a producer of insurance or other licensee[,]
if requested by someone other than the licensee $10

20. Certificate of status as
a producer of insurance or other licensee[,]
if requested by someone other than the licensee $10

680B.070 1. Each authorized insurer, fraternal
benefit society, health maintenance organization, organization for dental care , prepaid limited health service
organization and motor club shall on or before March 1 of each
year pay to the Commissioner [the]a reasonable uniform amount, not to exceed [$15,]$30, as the
Commissioner requires, to cover the assessment levied upon this state in the
same calendar year by the National Association of Insurance Commissioners to
defray:

(a) The general expenses of the Association; and

(b) Reasonable and necessary travel and related
expenses incurred by the Commissioner and members of his staff, without
limitation as to number, in attending meetings of the Association and its
committees, subcommittees, hearings and other official activities.

The Commissioner shall give written notice of the required
amount.

2. Expenses incurred for the purposes described in
paragraphs (a) and (b) of subsection 1 must be paid in full and are not subject
to the limitations expressed in NRS 281.160 or in the regulations of any state
agency.

3. All money received by the Commissioner pursuant to
subsection 1 must be deposited in the State Treasury for credit to the National
Association Account of the Division of Insurance, which is hereby created in
the State General Fund. Except as otherwise provided in subsection 2, all
claims against the Account must be paid as other claims against the State are
paid.

Sec. 9. NRS 681A.160 is hereby amended to
read as follows:

681A.160 1. Except as otherwise provided in
subsection 2, credit must be allowed if reinsurance is ceded to an assuming
insurer which is accredited as a reinsurer in this state. An accredited
reinsurer is one which:

(a) Files with the Commissioner an executed form approved by the Commissioner as evidence
of its submission to this states jurisdiction;

(b) Submits to this states authority to examine its
books and records;

(c) [Is]Files with the Commissioner a certified copy of a
certificate of authority or other evidence approved by the Commissioner
indicating that it is licensed to transact insurance or
reinsurance in at least one state, or in the case of a branch in the United
States of an alien assuming insurer is entered through and licensed to transact
insurance or reinsurance in at least one state;

(d) Files annually with the Commissioner a copy of its
annual statement filed with the Division of its state of domicile or entry and
a copy of its most recent audited financial statement; and

(e) Maintains a surplus as regards policyholders in an
amount which is not less than $20,000,000 and whose accreditation:

(1) Has not been denied by the Commissioner
within 90 days after its submission; or

2. No credit may be allowed for a domestic ceding insurer if the assuming
insurers accreditation has been revoked by the Commissioner after notice and a hearing.

Sec. 10. NRS 681A.180 is hereby amended to
read as follows:

681A.180 1. [Credit]Except as otherwise provided in
subsection 4, credit must be allowed if reinsurance is ceded to
an assuming insurer which maintains a trust fund in a qualified financial
institution in the United States for the payment of the valid claims of its
policyholders and ceding insurers in the United States, their assigns and
successors in interest. The assuming insurer shall report annually to the
Commissioner information substantially the same as that required to be reported
on the National Association of Insurance Commissioners form of annual
statement by licensed insurers to enable the Commissioner to determine the
sufficiency of the trust fund.

2. In the case of a single assuming insurer, the trust
must consist of an account in trust equal to the assuming insurers liabilities
attributable to business written in the United States and the assuming insurer
shall maintain a surplus in trust of not less than $20,000,000.

3. In the case of a group of incorporated and
individual unincorporated underwriters, the trust must consist of an account in
trust equal to the groups liabilities attributable to business written in the
United States and the group shall maintain a surplus in trust of which
$100,000,000 must be held jointly for the benefit of ceding insurers in the
United States to any member of the group, and the group shall make available to
the Commissioner an annual certification of the solvency of each underwriter by
the groups domiciliary regulator and its independent public accountants.

4. If the
assuming insurer does not meet the requirements of NRS 681A.110, 681A.160 or
681A.170, credit must not be allowed unless the assuming insurer has agreed to
the following conditions set forth in the trust agreement:

(a) Notwithstanding
any provision to the contrary in the trust instrument, if the trust fund
consists of an amount that is less than the amount required pursuant to this
section, or if the grantor of the trust fund is declared to be insolvent or
placed into receivership, rehabilitation, liquidation or a similar proceeding
in accordance with the laws of the grantors state or country of domicile, the
trustee of the trust fund must comply with an order of the commissioner of
insurance or other appropriate person with regulatory authority over the trust
fund in that state or country or a court of competent jurisdiction requiring
the trustee to transfer to that commissioner or person all the assets of the
trust fund;

(b) The
assets of the trust fund must be distributed by and claims filed with and
valued by the commissioner of insurance or other appropriate person with
regulatory authority over the trust fund in accordance with the laws of the
state in which the trust fund is domiciled that are applicable to the
liquidation of domestic insurers in that state;

(c) If the
commissioner of insurance or other appropriate person with regulatory authority
over the trust fund determines that the assets of the trust fund or any portion
of the trust fund are not required to satisfy any claim of any ceding insurer
of the grantor of the trust fund in the United States, the assets must be
returned by that commissioner or person to the trustee of the trust fund for
distribution in accordance with the trust agreement; and

(1)
Is otherwise available to him under the laws of the United States; and

(2)
Is inconsistent with the provisions of this subsection.

Sec. 11. NRS 681A.190 is hereby amended to
read as follows:

681A.190 1. Credit must be allowed if reinsurance is
ceded to a group of incorporated insurers under common administration which:

(a) Does
not engage in any business other than underwriting as a member of the group;

(b) Is
subject to the same amount of regulation and solvency control by the groups
domiciliary regulator as are the unincorporated members of the group;

(c) Reports
annually to the Commissioner the information required by subsection 1 of NRS
681A.180;

[(b)](d) Has continuously transacted insurance
outside the United States for at least 3 years immediately before making an application for
accreditation;

[(c)](e) Submits to this states authority to
examine its books and records and bears the expense of the examination;

[(d)](f) Has aggregate policyholders surplus of
$10,000,000,000; and

[(e)](g) Maintains a trust pursuant to subsection
2.

2. The trust must be in an amount equal to the groups
several liabilities attributable to business ceded by ceding insurers in the
United States to any member of the group pursuant to contracts of reinsurance
issued in the name of the group, and the group shall maintain a joint surplus
in trust of which $100,000,000 must be held jointly for the benefit of ceding
insurers in the United States to any member of the group as additional security
for any such liabilities.

3. Each member of the group shall , within 90 days after the date its financial statements
must be filed with the groups domiciliary regulator, make
available to the Commissioner an annual certification of the members solvency
by the members domiciliary regulator and its independent public accountant.

Sec. 12. NRS 681A.200 is hereby amended to
read as follows:

681A.200 1. A trust for the purposes of NRS 681A.180
or 681A.190 , and any amendment to
the trust, must be established or amended in a form approved by [the
Commissioner.]:

(a) The
Commissioner; and

(b) The
commissioner of insurance or other appropriate person of:

(1)
The state in which the trust is domiciled; or

(2)
Any other state that, pursuant to the trust instrument, accepts regulatory
authority over the trust.

2. The
form of the trust and any amendment to the trust must be filed with the
commissioner of insurance or other appropriate person of each state in which
the policyholders of the ceding insurer who are the beneficiaries of the trust
are domiciled.

3. The
trust instrument must provide that contested claims become valid [and
enforceable upon], enforceable and payable from money held in the trust fund
to the extent that the contested claims remain unsatisfied, within 30 days
after the entry of the final order of any court of competent
jurisdiction in the United States. The trust must vest legal title to its
assets in the trustees of the trust for its policyholders and ceding insurers
in the United States, their assigns and successors in
interest.

States, their assigns and successors in interest. The trust
and the assuming insurer are subject to examination as determined by the
Commissioner. The trust must remain in effect for as long as the assuming
insurer or any member or former
member of the groupof
insurers has outstanding obligations due under the agreements for
reinsurance subject to the trust.

[2. No]

4. Not later
than February 28 of each year the trustees of the trust shall report to the
Commissioner in writing setting forth the balance of the trust and listing the
trusts investments at the end of the preceding year and shall certify the date
of termination of the trust, if so planned, or certify that the trust will not
expire before the next following December 31.

Sec. 13. NRS 681A.210 is hereby amended to
read as follows:

681A.210 1. Except as otherwise provided in
subsection 2, if the assuming insurer is not licensed or accredited to transact
insurance or reinsurance in this state, the credit permitted by NRS 681A.170 or
681A.180 must not be allowed unless the assuming insurer agrees in the
agreements for reinsurance:

(a) That in the event of the failure of the assuming
insurer to perform its obligations under the terms of the agreement, the
assuming insurer, at the request of the ceding insurer, will submit to the
jurisdiction of any court of competent jurisdiction in any state of the United
States, will comply with all requirements necessary to give the court
jurisdiction, and will abide by the final decision of the court or of any
appellate court in the event of an appeal; [and]

(b) To designate the Commissioner or a designated
attorney as its true and lawful attorney upon whom may be served any lawful
process in an action, suit or proceeding instituted by or on behalf of the
ceding company[.] ; and

(c) To
comply with the conditions set forth in subsection 4 of NRS 681A.180.

2. This section does not conflict with or override the
obligation of the parties to an agreement for reinsurance to arbitrate their
disputes[,]
if such an obligation is created in the agreement.

Sec. 14. NRS 681A.420 is hereby amended to
read as follows:

681A.420 1. A person shall not act as a broker for
reinsurance [if he maintains an office, directly or as a member or
employee of a firm or association or as an officer, director or employee of a
corporation:

(a) In this
state,]for a
domestic insurer or reinsurer unless he is [a]:

(a) A licensed
producer in this state; or

(b) [In another state, unless he is a licensed producer]Licensed as a nonresident
intermediary for reinsurance in this state .[or in another state
having a law substantially similar to this title or he is licensed in this
state as a nonresident intermediary.]

2. A person shall not act as a [manager]broker for
reinsurance[:

(a) For]for a foreign or alien insurer or reinsurer
[domiciled]if he maintains an office, directly or as a member or
employee of a firm or association or as an officer, director or employee of a
corporation in this state, unless he is [a]:

(a) A licensed
producer in this state; or

(b) [In]Licensed as a nonresident intermediary for reinsurance in this
state . [,
if he maintains an office individually or as a member or employee of a firm or association or as an officer, director or employee of
a corporation in this state, unless he is a licensed producer in this state; or

a firm or
association or as an officer, director or employee of a corporation in this
state, unless he is a licensed producer in this state; or

(c) In
another state for a foreign insurer, unless he is a licensed producer in this
state or in another state having a law substantially similar to this title or
he is licensed in this state as a nonresident intermediary.]

3. A person
shall not act as a manager for reinsurance [shall:] for a domestic insurer or reinsurer
unless he is:

(a) A
licensed producer in this state; or

(b) Licensed
as a nonresident manager for reinsurance in this state.

4. A
person shall not act as a manager for reinsurance for any foreign or alien
insurer or reinsurer if he maintains an office, directly or as a member or
employee of a firm or association or as an officer, director or employee of a
corporation in this state, unless he is:

(a) A
licensed producer in this state; or

(b) Licensed
as a nonresident manager for reinsurance in this state.

5. A
manager for reinsurance shall:

(a) File a bond from an insurer in an amount that is
acceptable to the Commissioner for the protection of the reinsurer; and

(b) Maintain a policy covering errors and omissions in
an amount that is acceptable to the Commissioner.

Sec. 15. NRS 681B.160 is hereby amended to
read as follows:

681B.160 1. [All]Except as otherwise provided in
subsection 5, all bonds or other evidences of debt having a fixed
term and rate of interest held by an insurer may, if amply secured and not in
default as to principal or interest, be valued as follows:

(a) If purchased at par, at the par value.

(b) If purchased above or below par, on the basis of
the purchase price adjusted so as to bring the value to par at maturity and so
as to yield in the meantime the effective rate of interest at which the
purchase was made[,]
or , in lieu of [such]that method,
according to [such]an accepted method of valuation [as]that is approved by
the Commissioner.

2. The purchase price [shall in no case]must not be taken at
a higher figure than the actual market value at the time of purchase, plus
actual brokerage, transfer, postage or express charges paid in the acquisition
of such securities.

3. Unless otherwise provided by a valuation established or approved by the
Commissioner, [no such security shall]the security must not be
carried at above the call price for the entire issue during any period within
which the security may be so called.

4. The Commissioner [shall have]has full discretion
in determining the method of calculating values [according to the rules
set forth in]pursuant
to this section.

5. A
valuation determined pursuant to this section must not be inconsistent with any
applicable valuation or method then currently formulated or approved by the
National Association of Insurance Commissioners or its successor organization.

Sec. 16. NRS 681B.170 is hereby amended to
read as follows:

681B.170 1. [Securities,]Except as otherwise provided in
subsection 4, securities, other than those [referred to]specified in NRS
681B.160, held by an insurer [shall]must be valued, in the discretion of the
Commissioner, at their market value, or at their appraised value, or at prices
determined by him as representing their fair market value.

2. Preferred or guaranteed stocks or shares while
paying full dividends may be carried at a fixed value in lieu of market value,
at the discretion of the Commissioner and in accordance with [such]a method of
computation [as he may approve.] approved by the Commissioner.

3. The stock of a subsidiary of an insurer [shall]must be valued on
the basis of the value of only [such of the]those assets of [such]the subsidiary as
would constitute lawful investments of the insurer if acquired or held directly
by the insurer.

4. A
valuation determined pursuant to this section must not be inconsistent with any
applicable valuation or method then currently formulated or approved by the
National Association of Insurance Commissioners or its successor organization.

Sec. 17. NRS 682A.080 is hereby amended to
read as follows:

682A.080 1. An insurer may invest any of its funds in
obligations other than those eligible for investment under NRS 682A.230 [(] , relating to real
property mortgages , [),]
if they are issued, assumed or guaranteed by any solvent institution [created
or existing under the laws of the United States of America, Canada or Mexico,
or of any state, district, province or territory thereof,]
and are qualified under any of the following:

(a) Obligations which are secured by adequate
collateral security and bear fixed interest if , during each of any 3, including the last 2,
of the 5 fiscal years next preceding the date of acquisition by the insurer,
the net earnings of the issuing, assuming or guaranteeing institution available
for its fixed charges, as defined in NRS 682A.090, have been not less than 1
1/2 times the total of its fixed charges for [such]that year. In
determining the adequacy of collateral security , not more than one-third of the total value
of [such]the required collateral may consist of stock
other than stock meeting the requirements of NRS 682A.100 [(] , relating to preferred
or guaranteed stock . [).]

(b) Fixed interest-bearing obligations, other than
those described in paragraph (a), if the net earnings of the issuing, assuming
or guaranteeing institution available for its fixed charges for a period of 5
fiscal years next preceding the date of acquisition by the insurer have
averaged per year not less than 1 1/2 times its average annual fixed charges
applicable to [such]that period and if , during the last year of [such period such]that period, the net
earnings have been not less than 1 1/2 times its fixed charges for [such]that year.

(c) Adjustment, income or other contingent interest
obligations if the net earnings of the issuing, assuming or guaranteeing
institution available for its fixed charges for a period of 5 fiscal years next
preceding the date of acquisition by the insurer have averaged per year not
less than 1 1/2 times the sum of its average annual fixed charges and its
average annual maximum contingent interest applicable to such period and if , during each of the last
2 years of [such period such]that period, the net earnings have not been
less than 1 1/2 times the sum of its fixed charges and maximum contingent
interest for such year.

(d) Capital stock and other securities of:

(1) A state development corporation organized
under the provisions of chapter 670 of NRS.

(2) A corporation for economic revitalization
and diversification organized under the provisions of chapter 670A of NRS, if
the insurer is a member of the corporation, and to the
extent of its loan limit established under NRS 670A.200.

member of the corporation, and to the extent of its loan
limit established under NRS 670A.200.

2. No insurer may invest in any such bonds or
evidences of indebtedness in excess of 10 percent of any issue of such bonds or
evidences of indebtedness or, subject to subsection 1 of NRS 682A.050 [(diversification),], relating to diversification, more
than an amount equal to 10 percent of the insurers admitted assets in any
issue.

Sec. 18. NRS 682A.100 is hereby amended to
read as follows:

682A.100 1. An insurer may invest in preferred or
guaranteed stocks or shares of any solvent institution [existing under the laws
of the United States of America, Canada or Mexico, or of any state or province
thereof,] if all of the prior obligations and prior
preferred stocks, if any, of the institution at the date of acquisition of the
investment by the insurer are eligible as investments under this chapter and if
the net earnings of the institution available for its fixed charges during
either of the last 2 years have been, and during each of the last 5 years have
averaged, not less than 1 1/2 times the sum of its average annual fixed
charges, if any, its average annual maximum contingent interest, if any, and
its average annual preferred dividend requirements. For the purposes of this
section, the computation refers to the fiscal years immediately preceding the
date of acquisition of the investment by the insurer, and the term preferred
dividend requirement means cumulative or noncumulative dividends, whether paid
or not.

2. No insurer may invest in any such preferred or
guaranteed stocks in an amount in excess of 35 percent of the particular issue
of guaranteed or preferred stock or, subject to subsection 1 of NRS 682A.050 , more than an amount
equal to 10 percent of the insurers admitted assets in any one issue.

Sec. 19. NRS 682A.110 is hereby amended to
read as follows:

682A.110 1. An insurer may invest up to 35 percent of
its assets in nonassessable common stocks, other than insurance stocks, of any
solvent corporation ,[organized and existing under the laws of the United States of
America, Canada or Mexico, or of any state or province thereof,]
except that bank or trust company stocks may be assessable and any stocks may
be assessable for taxes[,]
if the corporation has had net earnings available for dividends on the stock in
each of the 5 fiscal years next preceding acquisition by the insurer. If the
issuing corporation has not been in legal existence for all of the 5 fiscal
years but was formed as a consolidation or merger of two or more businesses of
which at least one was in operation on a date 5 years before the investment,
the test of eligibility of its common stock under this section must be based
upon consolidated pro forma statements of the predecessor or constituent
institutions.

2. Any amount invested in a fund or trust under NRS
682A.140 must not be included in computing the amounts prescribed in subsection
1.

Sec. 20. NRS 683A.08524 is hereby amended to
read as follows:

683A.08524 1. Except as otherwise provided [by]in subsection 2, the
Commissioner shall issue a certificate of registration as an administrator to
an applicant who:

(a) Submits an application on a form prescribed by the
Commissioner;

(b) Has complied with the provisions of NRS 683A.08522;
and

(c) Pays the fee for the issuance of a certificate of
registration prescribed in NRS 680B.010.

2. The Commissioner may refuse to issue a certificate
of registration as an administrator to an applicant if the Commissioner
determines that the applicant or any person who has
completed an affidavit pursuant to subsection 6 of NRS 683A.08522:

applicant or any person who has completed an affidavit
pursuant to subsection 6 of NRS 683A.08522:

(a) Is not competent to act as an administrator;

(b) Is not trustworthy or financially responsible;

(c) Does not have a good personal or business
reputation;

(d) Has had a license or certificate to transact
insurance denied for cause, suspended or revoked in this state or any other
state; [or]

(e) Has failed to comply with any provision of this
chapter[.] ; or

(f) Is
financially unsound.

Sec. 21. NRS 683A.08528 is hereby amended to
read as follows:

683A.08528 1. Not later than [March]July 1 of each year,
each holder of a certificate of registration as an administrator shall file [a
financial statement] with the Commissioner [on
a form approved by the Commissioner.] an annual report for the most recently completed fiscal
year of the administrator. Each annual report must be verified by at least two
officers of the administrator.

2. Each
annual report filed pursuant to this section must include all the following:

(a) Except
as otherwise provided in this paragraph, a financial statement of the
administrator that has been audited and prepared by an independent certified
public accountant. In lieu of a financial statement that has been audited and
prepared by an independent certified public accountant, the administrator may
include with the annual report a financial statement that has been reviewed by
an independent certified public accountant if:

(1)
The total business assets of the administrator were less than $100,000 at the
end of the most recently completed fiscal year of the administrator; or

(2)
The administrator did not have any agreements to act as an administrator during
the most recently completed fiscal year of the administrator.

(b) The
complete name and address of each person, if any, for whom the administrator
agreed to act as an administrator during the most recently completed fiscal
year of the administrator.

(c) Any
other information required by the Commissioner.

3. In
addition to the information required pursuant to subsection 2, if an annual
report is prepared on a consolidated basis, the annual report must include a
columnar or combining worksheet that:

(a) Includes
the amounts shown on the consolidated financial statement accompanying the
annual report;

(b) Separately
sets forth the amounts for each entity included in the worksheet; and

(c) Includes
an explanation of each consolidating and eliminating entry included in the
worksheet.

4. Each
administrator who files an annual report pursuant to this section shall, at the
time of filing the annual report, pay a filing fee in an amount determined by
the Commissioner.

5. On or
before September 1 of each year, the Commissioner shall, for each
administrator, review the annual report that is most recently filed by the
administrator. As soon as practicable after reviewing the report, the Commissioner
shall:

(1)
Indicating that, based on the annual report and accompanying financial
statement, the administrator has a positive net worth and is currently licensed
and in good standing in this state; or

(2)
Setting forth any deficiency found by the Commissioner in the annual report and
accompanying financial statement; or

(b) Submit
a statement to any electronic database maintained by the National Association
of Insurance Commissioners or any affiliate or subsidiary of the Association:

(1)
Indicating that, based on the annual report and accompanying financial statement,
the administrator has a positive net worth and is in compliance with existing
law; or

(2)
Setting forth any deficiency found by the Commissioner in the annual report and
accompanying financial statement.

Sec. 22. NRS 683A.0892 is hereby amended to
read as follows:

683A.0892 1.
The Commissioner:

[1.](a) Shall suspend or revoke the certificate of
registration of an administrator if the Commissioner has determined, after
notice and a hearing, that the administrator:

[(a)](1) Is in an unsound financial condition;

[(b)](2) Uses methods or practices in the conduct
of his business that are hazardous or injurious to insured persons or members
of the general public; or

[(c)](3) Has failed to pay any judgment against him
in this state within 60 days after the judgment became final.

[2.](b) May suspend or revoke the certificate of
registration of an administrator if the Commissioner determines, after notice
and a hearing, that the administrator:

[(a)](1) Has willfully violated or failed to comply
with any provision of this Code, any regulation adopted pursuant to this Code
or any order of the Commissioner;

[(b)](2) Has refused to be examined by the
Commissioner or has refused to produce accounts, records or files for
examination upon the request of the Commissioner;

[(c)](3) Has, without just cause, refused to pay
claims or perform services pursuant to his contracts or has, without just
cause, caused persons to accept less than the amount of money owed to them
pursuant to the contracts, or has caused persons to employ an attorney or bring
a civil action against him to receive full payment or settlement of claims;

[(d)](4) Is affiliated with, managed by or owned by
another administrator or an insurer who transacts insurance in this state without
a certificate of authority or certificate of registration;

[(e)](5) Fails to comply with any of the
requirements for a certificate of registration;

[(f)](6) Has been convicted of[,]
or has entered a plea of guilty or nolo contendere to a felony, whether or not
adjudication was withheld; [or

(g)](7) Has had his
authority to act as an administrator in another state limited, suspended or
revoked[.

3. May,]; or

(8)
Has failed to file an annual report in accordance with NRS 683A.08528.

(c) May
suspend or revoke the certificate of registration of an administrator if the
Commissioner determines, after notice and a hearing, that a responsible person:

(1)
Has refused to provide any information relating to the administrators affairs
or refused to perform any other legal obligation relating to an examination
upon request by the Commissioner; or

(2)
Has been convicted of or has entered a plea of guilty or nolo contendere to a
felony committed on or after October 1, 2003, whether or not adjudication was
withheld.

(d) May, upon
notice to the administrator, suspend the certificate of registration of the
administrator pending a hearing if:

[(a)](1) The administrator is impaired or
insolvent;

[(b)](2) A proceeding for receivership,
conservatorship or rehabilitation has been commenced against the administrator
in any state; or

[(c)](3) The financial condition or the business
practices of the administrator represent an imminent threat to the public
health, safety or welfare of the residents of this state.

[4.](e) May, in addition to or in lieu of the
suspension or revocation of the certificate of registration of the
administrator, impose a fine of $2,000 for each act or violation.

2. As
used in this section, responsible person means any person who is responsible
for or controls or is authorized to control or advise the affairs of an
administrator, including, without limitation:

(a) A
member of the board of directors, board of trustees, executive committee or
other governing board or committee of the administrator;

(b) The
president, vice president, chief executive officer, chief operating officer or
any other principal officer of an administrator, if the administrator is a
corporation;

(c) A
partner or member of the administrator, if the administrator is a partnership,
association or limited-liability company; and

(d) Any
shareholder or member of the administrator who directly or indirectly holds 10
percent or more of the voting stock, voting securities or voting interest of
the administrator.

Sec. 23. NRS 683A.201 is hereby amended to
read as follows:

683A.201 1. A person shall not sell, solicit or
negotiate insurance in this state for any class of insurance unless he is
licensed for that class of insurance.

2. An insurer is exempt from the requirement for
licensure as a producer of insurance, but this exemption does not extend to an
insurers officers, directors, employees, subsidiaries or affiliates[.] who sell, solicit or negotiate
insurance.

3. A person required to be licensed in this state who
transacts insurance without a license is subject to an administrative fine of
not more that $1,000 for each violation.

Sec. 24. NRS 683A.211 is hereby amended to
read as follows:

683A.211 The following persons need not be licensed as
producers of insurance:

1. An officer, director or employee of an insurer or
of a producer of insurance if the officer, director or employee does not
receive any commission on policies written or sold to insure risks residing,
located or to be performed in this state and:

(a) The officer, director or employees activities are
executive, administrative, managerial[,]or clerical , or a combination [of
these,]thereof,
and are only indirectly related to the sale, solicitation or negotiation
of insurance;

(b) The officer, director or employees function
relates to underwriting, control of losses, inspection or the processing,
adjusting, investigating or settling of claims on contracts of insurance; or

(c) The officer, director or employee is acting in the
capacity of a special agent or supervisor of an agency assisting producers of
insurance where his activities are limited to providing technical advice and
assistance to licensed producers and do not include sale, solicitation or negotiation
of insurance.

2. A person who secures and furnishes information for
the purpose of group life insurance, group property and casualty insurance,
group annuities, or group or blanket accident and health insurance, or for the
purpose of enrolling natural persons under plans, issuing certificates under
plans or otherwise assisting in administering plans, or who performs
administrative services related to mass marketed property and casualty
insurance, if no commission is paid to him for the service[.]and he does not sell, solicit or
negotiate insurance. As used in this subsection, blanket
accident and health insurance has the meaning ascribed to it in NRS 689B.070.

3. An employer or association or its officers,
directors or employees, or the trustees of an employees trust plan, to the
extent that the employer, association, officers, directors, employees or
trustees are engaged in the administration or operation of a program of
employees benefits for the employers or associations own employees or the
employees of its subsidiaries or affiliates, if the program involves the use of
insurance issued by an insurer and the employer, association, officers,
directors, employees or trustees are not compensated by the insurer issuing the
contracts.

4. Employees of insurers or organizations employed by
insurers who are engaged in the inspection, rating or classification of risks
or in the supervision of the training of producers of insurance and are not
individually engaged in the sale, solicitation or negotiation of insurance.

5. A person whose activities in this state are limited
to advertising, without the intent to solicit insurance in this state, through
communications in printed publications or electronic mass media whose
distribution is not limited to residents of this state, if he does not sell,
solicit or negotiate insurance of risks residing, located or to be performed in
this state.

6. A salaried full-time employee who counsels or
advises his employer concerning the interests of the employer, or of the
subsidiaries or affiliates of the employer, in insurance, if the employee does
not sell or solicit insurance or receive a commission.

7. An employee of a producer of insurance or an
insurer who responds to requests from holders of policies previously issued, if
the employee is not directly compensated according to the volume of premiums
that may result from those services and does not solicit insurance or offer
advice concerning terms or conditions of policies.

Sec. 25. NRS 683A.251 is hereby amended to
read as follows:

683A.251 1. The Commissioner shall prescribe the form
of application by a natural person for a license as a resident producer of
insurance. The applicant must declare, under penalty of refusal to issue, or
suspension or revocation of, the license, that the statements made in the
application are true, correct and complete to the best of his knowledge and belief.

belief. Before approving the application, the Commissioner
must find that the applicant has:

(a) Attained the age of 18 years;

(b) Not committed any act that is a ground for refusal
to issue, or suspension or revocation of, a license;

(c) Completed a course of study for the lines of
authority for which the application
is made, unless the applicant is exempt from this requirement;

(d) Paid the fee prescribed for the license and a fee
of $15 for deposit in the Insurance Recovery Account, neither of which may be
refunded; and

(e) Successfully passed the examinations for the lines
of authority for which application is made, unless the applicant is exempt from
this requirement.

2. A business organization must be licensed as a producer
of insurance in order to act as such. Application must be made on a form
prescribed by the Commissioner. Before approving the application, the
Commissioner must find that the applicant has:

(a) Paid the fee prescribed for the license and a fee
of $15 for deposit in the Insurance Recovery Account, neither of which may be
refunded; and

(b) Designated a natural person who is licensed as a producer of insurance and who is affiliated with the business
organization to be responsible for the organizations compliance
with the laws and regulations of this state relating to insurance.

3. A natural person who is a resident of this state
applying for a license must furnish a copy of a search concerning him conducted
by the Federal Bureau of Investigation in its national criminal records[,]
and of a search concerning him of the Central Repository for Nevada Records of
Criminal History. The Commissioner shall adopt regulations concerning the
procedures for obtaining this information.

4. The Commissioner may require any document
reasonably necessary to verify information contained in an application.

Sec. 26. NRS 683A.261 is hereby amended to
read as follows:

683A.261 1. Unless the Commissioner refuses to issue
the license under NRS 683A.451, he shall issue a license as a producer of
insurance to a person who has satisfied the requirements of NRS 683A.241 and
683A.251. A producer of insurance may
qualify for a license in one or more of the lines of authority permitted by
statute or regulation, including:

(a) Life insurance on human lives, which includes
benefits from endowments and annuities and may include additional benefits from
death by accident and benefits for dismemberment by accident and for
disability.

(b) Health insurance for sickness, bodily injury or
accidental death, which may include benefits for disability.

(c) Property insurance for direct or consequential loss
or damage to property of every kind.

(d) Casualty insurance against legal liability,
including liability for death, injury or disability and damage to real or
personal property.

(f) Variable annuities[,]and variable life insurance, including
coverage reflecting the results of a separate investment account.

(g) Credit insurance, including life, disability,
property, unemployment, involuntary unemployment, mortgage life, mortgage
guaranty, mortgage disability, guaranteed protection of assets, and any other
form of insurance offered in connection with an extension
of credit that is limited to wholly or partially extinguishing the obligation
which the Commissioner determines should be considered as limited-line credit
insurance.

offered in connection with an extension of credit that is
limited to wholly or partially extinguishing the obligation which the
Commissioner determines should be considered as limited-line credit insurance.

(h) Personal lines, consisting of automobile and
motorcycle insurance and residential property insurance, including coverage for
flood, of personal watercraft and of excess liability, written over one or more
underlying policies of automobile or residential property insurance.

(i) Fixed annuities as a limited line.

(j) Travel and baggage as a limited line.

(k) Rental car agency as a limited line.

2. A license as a producer of insurance remains in
effect unless revoked, suspended[,
allowed to expire] or otherwise terminated[, if the license is
renewed when due,]if a request for a renewal is submitted on or before the
date for the renewal specified on the license, the fee for
renewal and a fee of $15 for deposit in the Insurance Recovery Account are paid
for each license and each affiliation with a business organization licensed
pursuant to subsection 2 of NRS 683A.251 , and any requirement for education or any other requirement to renew the
license is satisfied by the [due date.] date specified on the license for the
renewal. A producer of insurance may submit a request for a renewal of his
license within 30 days after the date specified on the license for the renewal
if the producer of insurance otherwise complies with the provisions of this
subsection and pays, in addition to any fee paid pursuant to this subsection, a
penalty of 50 percent of the renewal fee. A license as a producer of insurance
expires if the Commissioner receives a request for a renewal of the license
more than 30 days after the date specified on the license for the renewal. A
fee paid pursuant to this subsection is nonrefundable.

3. A natural person who allows his license as a
producer of insurance to expire may reapply for the same license within 12
months after the date specified on
the license for a renewal [was due]
without passing a written examination[,]or completing a course of study required
by paragraph (c) of subsection 1 of NRS 683A.251, but a penalty of
twice the [unpaid] renewal fee is required for any request for a renewal [fee]of the license that is received
after the [due date.] date specified on the license for the renewal.

4. A licensed producer of insurance who is unable to
renew his license because of military service, extended medical disability or
other extenuating circumstance may request a waiver of the time limit and of [an
examination,]any
fine or sanction otherwise required or imposed because of the failure to renew.

5. A license must state the licensees name, address,
personal identification number, the date of issuance, the lines of authority
and the date of expiration and must
contain any other information the Commissioner considers
necessary. A resident producer of
insurance shall maintain a place of business in this state which
is accessible to the public and where he principally conducts transactions
under his license. The place of business may be in his residence. The license
must be conspicuously displayed in an area of the place of business which is
open to the public.

6. A licensee shall inform the Commissioner of [a]each change of location from which he conducts business
as a producer of insurance and each change of business or residence address,
in writing or by other means acceptable to the Commissioner , within 30 days after the
change. If a licensee changes [his] the location from which he conducts business as a producer of insurance or his business or residence address
without giving written notice and the Commissioner is unable to locate the
licensee after diligent effort, he may revoke the license without a hearing.

producer of insurance
or his business or residence address without giving written
notice and the Commissioner is unable to locate the licensee after diligent
effort, he may revoke the license without a hearing. The mailing of a letter by
certified mail, return receipt requested, addressed to the licensee at his last
mailing address appearing on the records of the Division, and the return of the
letter undelivered, constitutes a diligent effort by the Commissioner.

Sec. 27. NRS 683A.301 is hereby amended to
read as follows:

683A.301 1. An applicant for a license as a producer
of insurance or a licensee who
desires to use a name other than his true name as shown on the license shall submit a request for approval of the
name and file with the Commissioner a certified copy of the
certificate or any renewal certificate filed pursuant to chapter 602 of NRS. An
incorporated applicant or licensee shall file with the Commissioner a document
showing the corporations true name and all fictitious names under which it
conducts or intends to conduct business. A licensee shall file promptly with
the Commissioner a written
notice of any change in or discontinuance of the use of a fictitious name.

2. The Commissioner may disapprove in writing the use
of a true name, other than the true name of a natural person who is the
applicant or licensee, or a fictitious name of any applicant or licensee, on
any of the following grounds:

(a) The name interferes with or is deceptively similar
to a name already filed and in use by another licensee.

(b) Use of the name may mislead the public in any
respect.

(c) The name states or implies that the applicant or
licensee is an insurer, motor club or hospital service plan or is entitled to
engage in activities related to insurance not permitted under the license
applied for or held.

(d) The name states or implies that the licensee is an
underwriter, but:

(1) A natural person licensed as an agent or
broker for life insurance may describe himself as an underwriter or chartered
life underwriter if entitled to do so;

(2) A natural person licensed for property and
casualty insurance may use the designation chartered property and casualty
underwriter if entitled thereto; and

(3) An insurance agent or brokers trade
association may use a name containing the word underwriter.

(e) The licensee [has already filed and not
discontinued the use of]submits a request to use more than [two
names, including the true name.] one fictitious name at a single business location.

3. A licensee shall not use a name after written
notice from the Commissioner indicates
that its use violates the provisions of this section. If the
Commissioner determines that the use is justified by mitigating circumstances,
he may permit, in writing, the use of the name to continue for a specified
reasonable period upon conditions imposed by him for the protection of the
public consistent with this section.

4. Paragraphs (a), (c) and (d) of subsection 2 do not
apply to the true name of an organization which on July 1, 1965, held under
that name a type of license similar to those governed by this chapter, or to a
fictitious name used on July 1, 1965, by a natural person or organization
holding such a license, if the fictitious name was filed with the Commissioner
on or before July 1, 1965.

683A.351 1. Every producer of insurance shall keep
complete records of transactions under his license. The records must show, for
each insurance policy placed or countersigned by or through the licensee, not
less than the names of the insurer and insured, the number and expiration date
of, and premium payable as to, the policy or contract, the names of all other
persons from whom business is accepted or to whom commissions are promised or
paid, all premiums collected, and such additional information as the
Commissioner may reasonably require.

2. The records must be open to examination of the
Commissioner at all times, and the Commissioner may at any time require the
licensee to furnish to him, in such a manner or form as he requires, any information kept or
required to be kept in those records. The records may be kept in an electronic format if, using
the electronic format, the records are retained in accordance with this
section.

3. Records of a particular policy or contract may be
destroyed 3 years after expiration of the policy or contract.

Sec. 29. Chapter 683C of NRS is hereby
amended by adding thereto the provisions set forth as sections 30 and 31 of
this act.

Sec. 30. The provisions of chapters 679A and 679B of NRS and NRS 683A.301,
683A.341 and 683A.351 apply to an insurance consultant.

Sec. 31. A licensee shall inform the Commissioner of all locations from which
business is conducted and of any change of business or residence address, in
writing or by any other means acceptable to the Commissioner, within 30 days
after the change. If a licensee changes his address without giving written
notice and the Commissioner is unable to locate the licensee after making a
diligent effort, the Commissioner may revoke the license without a hearing. The
mailing of a letter by certified mail, return receipt requested, addressed to
the licensee at his last mailing address appearing on the records of the
Division, and the return of the letter undelivered, constitutes a diligent
effort by the Commissioner.

Sec. 32. NRS 683C.020 is hereby amended to read
as follows:

683C.020 1. Except as otherwise provided in
subsection 2, no person may engage in the business of an insurance consultant
unless a license has been issued to him by the Commissioner.

2. An insurance consultants license is not required
for:

(a) An attorney licensed to practice law in this state
who is acting in his professional capacity;

(b) A licensed insurance agent, broker or surplus lines
broker;

(c) A trust officer of a bank who is acting in the
normal course of his employment; or

(d) An actuary or a certified public accountant who
provides information, recommendations, advice or services in his professional
capacity.

3. A
person required to be licensed in this state who acts as an insurance
consultant without a license is subject to an administrative fine of not more
than $1,000 for each act or violation.

Sec. 33. NRS 683C.030 is hereby amended to
read as follows:

683C.030 1. An application
for a license to act as an insurance consultant must be submitted to the
Commissioner on forms prescribed by the Commissioner and must be accompanied by [a]the
applicable license fee [of
$78]set forth in NRS 680B.010 and an additional fee of $15 which must be deposited in the Insurance Recovery Account created
pursuant to NRS 679B.305.

must be deposited in the Insurance
Recovery Account created pursuant to NRS 679B.305. The license fee and the additional fee are not refundable. If the applicant is a natural person, the application must
include the social security number of the applicant.

2. An applicant for an
insurance consultants license must successfully complete an examination and a
course of instruction which the Commissioner shall establish by regulation.

3. Each license issued pursuant to this chapter is
valid for 3 years from the date of issuance[,]
or until it is suspended, revoked or otherwise terminated.

Sec. 34. NRS 683C.035 is hereby amended to
read as follows:

683C.035 1. The Commissioner shall prescribe the form
of application by a natural person for a license as an insurance consultant.
The applicant must declare, under penalty of refusal to issue, or suspension or
revocation of, the license, that the statements made in the application are
true, correct and complete to the best of his knowledge and belief. Before
approving the application, the Commissioner must find that the applicant has:

(a) Attained the age of 18 years.

(b) Not committed any act that is a ground for refusal
to issue, or suspension or revocation of, a license[.] pursuant to NRS 683A.451.

(c) Paid the fee prescribed for the license and a fee
of $15 for deposit in the Insurance Recovery Account, neither of which may be
refunded.

(d) Passed each examination required for the license
and successfully completed each course of instruction which the Commissioner
requires by regulation, unless he is a resident of another state and holds a
similar license in that state.

2. A business organization must be licensed as an
insurance consultant in order to act as such. Application must be made on a
form prescribed by the Commissioner. Before approving the application, the
Commissioner must find that the applicant has:

(a) Paid the fee prescribed for the license and a fee
of $15 for deposit in the Insurance Recovery Account, neither of which may be
refunded; and

(b) Designated a natural person who is licensed as an insurance consultant in this state and who is affiliated
with the business organization to be responsible for the
organizations compliance with the laws and regulations of this state relating
to insurance.

3. The Commissioner may require any document
reasonably necessary to verify information contained in an application.

4. A license issued pursuant to this chapter is valid
for 3 years after the date of issuance or until it is suspended, revoked or
otherwise terminated.

5. An
insurance consultant may qualify for a license pursuant to this chapter in one
or more of the lines of authority set forth in paragraphs (a) to (d),
inclusive, of subsection 1 of NRS 683A.261.

Sec. 35. NRS 683C.040 is hereby amended to
read as follows:

683C.040 1.
A license may be renewed for additional 3-year periods by submitting
to the Commissioner an application for renewal and:

[1.](a) If the application is made:

[(a)](1) On or before the expiration date of the
license, the applicable renewal fee and an additional fee of $15 for deposit in
the Insurance Recovery Account; or

[(b)](2) Not more than 30 days after the expiration
date of the license, the applicable renewal fee plus any late fee required and
an additional fee of $15 for deposit in the Insurance Recovery Account;

[2.](b) If the applicant is a natural person, the
statement required pursuant to NRS 683C.043; and

[3.](c) If the applicant is a resident, proof of
the successful completion of appropriate courses of study required for renewal,
as established by the Commissioner by regulation.

2. The
fees specified in this section are not refundable.

Sec. 36. NRS 683C.070 is hereby amended to
read as follows:

683C.070 [No]A person licensed pursuant
to this chapter may not concurrently
hold [an insurance agents license, brokers]a license as a producer of insurance
or a surplus lines
brokers license in any line.

Sec. 37. NRS 683C.080 is hereby amended to
read as follows:

683C.080 [No]A licensed insurance
consultant [may]shall not employ, be employed by or be in
partnership with, or receive any remuneration arising out of his activities as
an insurance consultant from, any licensed producer of insurance [agent, broker]
or surplus lines broker or insurer.

Sec. 38. NRS 685A.070 is hereby amended to
read as follows:

685A.070 1. A broker shall
not knowingly place surplus lines insurance with an insurer which is unsound
financially or ineligible pursuant to this section.

2. Except as otherwise
provided in this section, [no]an insurer is not eligible [for
the acceptance of]to accept surplus lines risks pursuant to this chapter unless it has
surplus as to policyholders in an amount of not less than [$5,000,000]$15,000,000
and, if an alien insurer, unless it has
and maintains in a bank or trust company which is a member of the United States
Federal Reserve System a trust fund established pursuant to terms that are reasonably adequate [for the protection of]to protect
all of its policyholders in the United
States .[in an amount of not less than $1,500,000.] Such a trust fund must not have an expiration date which
is at any time less than 5 years in the future, on a continuing basis. In the
case of:

(a) A single alien insurer, such a trust fund
must not be less than the greater of $5,400,000 or 30 percent of the gross
liabilities of the alien insurer for surplus lines in the United States,
excluding any liabilities for aviation, wet marine and transportation insurance,
not to exceed $60,000,000, to be determined annually on the basis of accounting
practices and procedures that are substantially equivalent to the accounting
practices and procedures applicable in this state as of December 31 of the year
immediately preceding the date of the determination where:

(1)
The liabilities are maintained in an irrevocable trust account in a qualified
financial institution in the United States, on behalf of policyholders in the
United States, consisting of cash, securities, letters of credit or any other
investments of substantially the same character and quality as investments that
are eligible investments pursuant to chapter 682A of NRS for the capital and
statutory reserves of admitted insurers to write like kinds of insurance in
this state. The trust fund, which must be included in any calculation of
capital and surplus or its equivalent, must comply with the requirements set
forth in the Standard Trust Agreement required
for listing with the International Insurers Department of the National
Association of Insurance Commissioners;

required for
listing with the International Insurers Department of the National Association
of Insurance Commissioners;

(2)
The alien insurer may request approval by the Commissioner to use the trust
fund to pay any valid claim against a surplus line if the balance of the trust
fund is not, during any period, less than $5,400,000 or 30 percent of the alien
insurers current gross liabilities for surplus lines in the United States,
excluding any liabilities for aviation, wet marine and transportation
insurance; and

(3)
In calculating the amount of the trust fund required by this subsection, credit
must be given for any deposits for any surplus lines that are separately
required and maintained within a state or territory of the United States, not
to exceed the amount of the alien insurers loss and loss adjustment reserves
maintained in that state or territory.

(b) A group of insurers which includes individual unincorporated
insurers, such a trust fund must not be less than $100,000,000.

[(b)] (c) A group of incorporated insurers under common
administration, such a trust fund must not be less than $100,000,000. Each insurer within the group must
individually maintain capital and surplus of not less than $25,000,000. The group of incorporated insurers must:

(1) Operate under the
supervision of the Department of Trade and Industry of the United Kingdom;

(2) Possess aggregate
policyholders surplus of $10,000,000,000, which must consist of money in trust
in an amount not less than the assuming insurers liabilities attributable to
insurance written in the United States; and

(3) Maintain a joint
trusteed surplus of which $100,000,000 must be held jointly for the benefit of
United States ceding insurers of any member of the group.

[(c)] (d) An insurance exchange created by the laws of a state, the
insurance exchange shall have and maintain a trust fund in an amount of not
less than [$50,000,000]$75,000,000 or have a surplus as to policyholders in an amount of not
less than [$50,000,000.]$75,000,000. If an insurance exchange maintains money for the protection
of all policyholders, each syndicate shall maintain minimum capital and surplus
of not less than [$5,000,000]$15,000,000 and must qualify separately to be eligible for the
acceptance of surplus lines risks pursuant to this chapter.

The Commissioner may require larger
trust funds or surplus as to policyholders than those set forth in this section
if, in his judgment, the volume of business being transacted or proposed to be
transacted warrants larger amounts.

3. [No]An insurer is not eligible to
write surplus lines of insurance unless it has established a reputation for
financial integrity and satisfactory practices in underwriting and handling
claims. In addition, a foreign insurer must be authorized in the state of its
domicile to write the kinds of insurance which it intends to write in Nevada.

4. The Commissioner may from time to time compile or
approve a list of all surplus lines insurers deemed by him to be eligible
currently, and may mail a copy of the list to each broker at his office last of
record with the Commissioner. To be placed on the list, a surplus lines insurer
must file an application with the Commissioner. The application must be
accompanied by a nonrefundable fee of $2,450. This subsection does not require
the Commissioner to determine the actual financial condition or claims
practices of any unauthorized insurer. The status of eligibility, if granted by
the Commissioner, indicates only that the insurer appears
to be sound financially and to have satisfactory claims practices, and that the
Commissioner has no credible evidence to the contrary.

Commissioner, indicates only that the insurer appears to be
sound financially and to have satisfactory claims practices, and that the
Commissioner has no credible evidence to the contrary. While any such list is
in effect, the broker shall restrict to the insurers so listed all surplus
lines business placed by him.

Sec. 38.3. NRS 685A.080 is hereby amended to read as
follows:

685A.0801. Upon placing a surplus
lines coverage, the broker shall promptly issue and deliver to the insured
evidence of the insurance consisting either of the policy as issued by the
insurer, or, if such a policy is not then available, the surplus lines brokers
certificate executed by the broker or a cover note .[endorsed by the broker.]
Such a certificate or [endorsed] cover note must show the
description and location of the subject of the insurance, coverage, conditions
and term of the insurance, the premium and rate charged and taxes collected
from the insured, and the name and address of the insured and insurer and must
state that the broker has verified that the insurance described has been
granted or issued. If the direct risk is assumed by more than one insurer, the
certificate must state the name and address and proportion of the entire direct
risk assumed by each such insurer.

2. A broker shall not issue any such certificate or
any cover note, or purport to insure or represent that insurance will be or has
been granted by any unauthorized insurer, unless he has prior written authority
from the insurer for the insurance, or has received information from the
insurer in the regular course of business that the insurance has been granted,
or an insurance policy providing the insurance actually has been issued by the
insurer and delivered to the insured.

3. If after the issuance and delivery of any such
certificate there is any change as to the identity of the insurers, or the
proportion of the direct risk assumed by an insurer as stated in the brokers
original certificate, or in any other material respect as to the insurance
evidenced by the certificate, the broker shall promptly issue and deliver to
the insured a substitute certificate accurately showing the current status of
the coverage and the insurers responsible thereunder.

4. If a policy issued by the insurer is not available
upon placement of the insurance and the broker has issued and delivered his
certificate as provided in this section, upon request therefor by the insured
the broker shall as soon as reasonably possible procure from the insurer its
policy evidencing the insurance and deliver the policy to the insured in
replacement of the brokers certificate theretofore issued.

5. Any surplus lines broker who knowingly or
negligently issues a false certificate of insurance or who fails promptly to
notify the insured of any material change with respect to the insurance by
delivery to the insured of a substitute certificate as provided in subsection 3
is subject to the penalty provided by NRS 679A.180 or to any greater applicable
penalty otherwise provided by law.

Sec. 38.7.NRS 685A.090 is hereby
amended to read as follows:

685A.090 [Every]Each insurance
contract procured and delivered as a surplus lines coverage pursuant to this
chapter must [be countersigned by the broker who procured it, and must]
have conspicuously stamped upon it:

This insurance contract is issued
pursuant to the Nevada insurance laws by an insurer neither licensed by nor
under the supervision of the Division of Insurance of the Department of
Business and Industry of the State of Nevada.

the State of Nevada. If the insurer is
found insolvent, a claim under this contract is not covered by the Nevada
Insurance Guaranty Association Act.

Sec. 39. NRS 685A.120 is hereby amended to
read as follows:

685A.120 1. No person [in this state]
may act as, hold himself out as[,]
or be a surplus lines broker with respect to subjects of insurance resident,
located or to be performed in this state or elsewhere unless he is licensed as
such by the Commissioner pursuant to this chapter.

2. Any person who has been licensed by this state as a
[broker]producer of insurance for general lines for at
least 6 months, or has been licensed in another state as a surplus lines broker
[for at least 1 year] and continues to be
licensed in that state, and who is deemed by the Commissioner to be competent
and trustworthy with respect to the handling of surplus lines may be licensed
as a surplus lines broker upon:

(a) Application for a license and payment of the
applicable fee for a license and a fee of $15 for deposit in the Insurance
Recovery Account created by NRS 679B.305;

(b) Submitting the statement required pursuant to NRS
685A.127; and

(c) Passing any examination prescribed by the
Commissioner on the subject of surplus lines.

3. An application for a license must be submitted to
the Commissioner on a form designated and furnished by him. The application
must include the social security number of the applicant.

4. A license issued pursuant to this chapter continues
in force for 3 years unless it is suspended, revoked or otherwise terminated.
The license may be renewed upon submission of the statement required pursuant
to NRS 685A.127 and payment of the applicable fee for renewal and a fee of $15
for deposit in the Insurance Recovery Account created by NRS 679B.305 to the
Commissioner on or before the last day of the month in which the license is
renewable.

5. A license which is not renewed expires at midnight
on the last day specified for its renewal. The Commissioner may accept a
request for renewal received by him within 30 days after the expiration of the
license if the request is accompanied by [the]:

(a) The statement
required pursuant to NRS 685A.127[,
a];

(b) The
applicable fee for renewal [of 150];

(c) A
penalty in an amount that is equal to 50 percent of the applicable fee [otherwise
required and a]for renewal; and

(d) A fee
of $15 for deposit in the Insurance Recovery Account created by NRS 679B.305.

Sec. 39.5.NRS 685A.180 is hereby amended to
read as follows:

685A.180 1. On or before March 1 of each year each
broker shall pay to the Commissioner a tax on surplus lines coverages written
by him in unauthorized insurers during the preceding calendar year at the same
rate of tax as imposed by law on the premiums of similar coverages written by
authorized insurers. If a broker has paid any taxes pursuant to NRS 685A.175,
he shall deduct the total paid from the tax due and pay the remainder, if any.

2. For the purposes of this section, the premium on
surplus lines coverages includes:

(a) The gross amount charged by the insurer for the
insurance, less any return premium;

(b) Any fee allowed by NRS 685A.155;

(c) Any policy fee;

(d) Any membership fee; [and]

(e) Any inspection
fee; and

(f) Any other
fees or assessments charged by the insurer as consideration for the insurance.

Premium does not include any additional amount charged for
state or federal tax, or for filing
affidavits or reports of coverage .[, inspection fee or the communication expenses of the broker.]

3. If a contract for surplus lines insurance covers
risks or exposures only partially in this state, the tax so payable must be
computed on that portion of the premium properly allocable to the risks or
exposures located in this state. The Commissioner may adopt regulations which
establish standards for allocating premiums for risks located in this state in
the same manner as premiums are allocated pursuant to NRS 680B.030.

4. The Commissioner shall promptly deposit all taxes
collected by him pursuant to this section with the State Treasurer, to the
credit of the State General Fund.

5. A broker who receives a credit for tax paid shall refund
to each insured the amount of the credit attributable to the insured when the
insurer pays a return premium or within 30 days, whichever is earlier.

Sec. 40. NRS 685B.080 is hereby amended to
read as follows:

685B.080 1.
Any unauthorized insurer who transacts any unauthorized act of an
insurance business as set forth in the Unauthorized Insurers Act may be fined
not more than $10,000 for each act or violation.

2. In
addition to any other penalties provided in this Code:

(a) Any
producer of insurance or surplus lines broker licensed in this state who in
this state knowingly represents or aids an unauthorized insurer in violation of
the Unauthorized Insurers Act is guilty of a category C felony and shall be
punished as provided in NRS 193.130.

(b) Any
person other than a producer of insurance or surplus lines broker licensed in
this state who in this state represents or aids an unauthorized insurer in violation
of the Unauthorized Insurers Act is guilty of a category C felony and shall be
punished as provided in NRS 193.130.

(c) Any
person who commits a second or subsequent violation of this section is guilty
of a category B felony and shall be punished by imprisonment in the state
prison for a minimum term of not less than 1 year and a maximum term of not
more than 20 years.

3. In
addition to the penalties provided in subsection 2, such a violator is liable,
personally, jointly and severally with any other person liable therefor, for
the payment of premium taxes at the same rate of tax as imposed by law on the
premiums of similar coverages written by authorized insurers.

Sec. 41. Chapter 686B of NRS is hereby
amended by adding thereto the provisions set forth as sections 42 to 46,
inclusive, of this act.

Sec. 42. As used in sections 42 to 46, inclusive, of this act, unless the context
otherwise requires, insured has the meaning ascribed to it in NRS 686B.260.

Sec. 43. The provisions of NRS 81.130 and 81.510 do not apply to the conversion of
an essential insurance association to a domestic mutual insurer or a domestic
reciprocal insurer as provided in sections 42 to 46, inclusive, of this act.

Sec. 44. 1. An essential insurance association shall, if requested to do so by
the Commissioner, file a notice of intent to qualify as a domestic mutual
insurer or a domestic reciprocal insurer. In the absence of a request by the
Commissioner, an essential insurance association may file such a notice at such
time as the association determines appropriate.

2. The notice
must be filed with the Commissioner at least 4 months before the date the
association is to become a domestic mutual insurer or a domestic reciprocal
insurer and must include:

(a) An
application prepared pursuant to chapter 680A of NRS for a certificate of
authority to transact business in Nevada as a domestic mutual insurer or a
domestic reciprocal insurer;

(b) A valuation
of the policyholders surplus according to both market and amortized value
based on the associations annual financial statement for the previous year;
and

(c) A provision
for the return of any unused portion of the insureds capital stabilization
charges.

Sec. 45. 1. At the time the association files a notice of intent to qualify as a
domestic mutual insurer or domestic reciprocal insurer, it must give a notice
of intent to all participating insurers and all insureds on a form approved by
the Commissioner.

2. Any
participating insurer or insured may, within 30 days after the date of the
notice, apply to the Division for a hearing concerning the associations
ability to qualify as a domestic mutual insurer or domestic reciprocal insurer.

3. An
association must comply with the provisions of:

(a) Chapter
692B of NRS, as applicable to mutual insurers, to qualify as a domestic mutual
insurer; or

(b) Chapter
694B of NRS, as applicable to reciprocal insurers, to qualify as a domestic
reciprocal insurer.

Sec. 46. Upon determining that an association has complied with sections 42 to 46,
inclusive, of this act and all other requirements applicable to domestic mutual
insurers, if the association is qualifying as a domestic mutual insurer, or to
domestic reciprocal insurers, if the association is qualifying as a domestic
reciprocal insurer, the Commissioner may issue to the association a certificate
of authority to transact business as a domestic mutual insurer or a domestic
reciprocal insurer.

Sec. 47. NRS 686B.030 is hereby amended to
read as follows:

686B.030 1. Except as otherwise provided in
subsection 2, NRS 686B.010 to 686B.1799, inclusive, apply to all kinds and
lines of direct insurance written on risks or operations in this state by any
insurer authorized to do business in this state, except:

(g) Casualty insurance for business and commercial
risks other than insurance covering the liability of a practitioner licensed
pursuant to chapters 630 to 640, inclusive, of NRS[.] ; and

(h) Surety
insurance.

2. The exclusions set forth in paragraphs (f) and (g)
of subsection 1 extend only to issues related to the determination or approval
of premium rates.

Sec. 48. NRS 686B.1781 is hereby amended to
read as follows:

686B.1781 [NRS 686B.1751 to 686B.1799,
inclusive, do not prohibit or regulate the payment of dividends, savings,
unearned premiums deposits or an equivalent abatement of premiums allowed or
returned by insurers to their policyholders, members or subscribers.]

1. An
insurer shall not unfairly discriminate among its policyholders in paying a
dividend[.], savings, unearned premium
deposits or an equivalent abatement of premiums allowed or returned by an
insurer for a policy of industrial insurance.

2. A
plan for the payment of dividends [is not a rating system or
plan.]for
industrial insurance must be filed before there is a dividend payment. The plan
shall be deemed approved unless the Commissioner disapproves the plan within 30
days after it is filed and received by the Commissioner. An
insurer shall not condition the payment of [such]
a dividend upon the renewal of a policy or contract by the policyholder, member
or subscriber.

3. An
insurer paying savings, unearned premium deposits or an equivalent abatement
for premiums allowed or returned for a policy of industrial insurance must
receive prior approval.

Sec. 49. NRS 686B.230 is hereby amended to
read as follows:

686B.230 1. The Nevada Essential Insurance
Association has, for purposes of this section and to the extent approved by the
Commissioner, the general powers and authority granted under the laws of this
state to carriers licensed to transact the kinds of insurance defined in NRS
681A.020 to 681A.080, inclusive.

2. The Association may take any necessary action to
make available necessary insurance, including , but not limited to , the following:

(a) Assess participating insurers amounts necessary to
pay the obligations of the Association, administration expenses, the cost of
examinations conducted pursuant to NRS 687A.110 and other expenses authorized
by this chapter. The assessment of each member insurer for the kind or kinds of
insurance designated in the plan [shall]must be in the proportion
that the net direct written premiums of the member insurer for the preceding
calendar year bear to the net direct written premiums of all member insurers
for the preceding calendar year. A member insurer may not be assessed in any
year an amount greater than 5 percent of his net direct written premiums for
the preceding calendar year. Each member insurer [shall]must be allowed a
premium tax credit at the rate of 20 percent per year for 5 successive years [following
termination of the Association.] beginning on the first day of the calendar year after the
calendar year in which the insurer pays the assessment pursuant to this
subsection.

(b) Enter into such contracts as are necessary or
proper to carry out the provisions and purposes of this section.

(c) Sue or be sued, including taking any legal action
necessary to recover any assessments for, on behalf of or against participating
carriers.

(d) Investigate claims brought against the fund and
adjust, compromise, settle and pay covered claims to the extent of the
associations obligation and deny all other claims. Process claims through its
employees or through one or more member insurers or other persons designated as
servicing facilities. Designation of a service facility is subject to the
approval of the Commissioner , but
such a designation
may be declined by a member insurer.

(e) Classify risks as may be applicable and equitable.

(f) Establish appropriate rates, rate classifications
and rating adjustments and file [such]those rates with the Commissioner in
accordance with this chapter.

(g) Administer any type of reinsurance program for or
on behalf of the Association or any participating carriers.

(h) Pool risks among participating carriers.

(i) Issue and market, through agents, policies of
insurance providing the coverage required by this section in its own name or on
behalf of participating carriers.

(j) Administer separate pools, separate accounts or
other plans as may be deemed appropriate for separate carriers or groups of
carriers.

(k) Invest, reinvest and administer all funds and
moneys held by the Association.

(l) Borrow funds needed by the Association to [effect]carry out the
purposes of this section.

(m) Develop, effectuate and promulgate any
loss-prevention programs aimed at the best interests of the Association and the
insuring public.

(n) Operate and administer any combination of plans,
pools, reinsurance arrangements or other mechanisms as deemed appropriate to
best accomplish the fair and equitable operation of the Association for the
purposes of making available essential insurance coverage.

3. In providing for the recoupment of a deficit of the
Association, an option [shall]must be offered to an insured each policy year
to pay a capital stabilization charge which [shall]must not exceed 100
percent of the premium charged to the insured in that year. The Board of
Directors shall determine the amount of the charge from appropriate factors of
loss experience and risk associated with the Association and the insured. An
insured who pays the stabilization charge [shall]must not be required
to pay any assessment to recoup a deficit of the Association incurred in any
policy year for which the charge is paid. The Associations plan of operation [shall]must provide for the
return to the insured of so much of his payment as remains after all actual or
potential liabilities under the policy have been discharged.

Sec. 50. NRS 686B.240 is hereby amended to
read as follows:

686B.240 The Commissioner and the Nevada Essential
Insurance Association may:

1. Give consideration to the need for adequate and
readily accessible coverage, to alternative methods of improving the market
affected, to the preferences of the insurers and agents, to the inherent
limitations of the insurance mechanism, to the need for reasonable underwriting
standards and to the requirement of reasonable loss-prevention measures.

2. Establish procedures that will create minimum
interference with the voluntary market.

3. Spread the burden imposed by the facility equitably
and efficiently.

4. Establish procedures for applicants and
participants to have grievances reviewed.

5. Take all reasonable and necessary steps to dissolve
the Association at the earliest date when essential insurance becomes readily
available in the private market. The dissolution of the Association, including
its assets and liabilities, [shall]must be accomplished under the supervision of
the Commissioner in an equitable and reasonable manner. The dissolution must, if determined to be appropriate by
the Commissioner, provide for the repayment of any loans or other money
provided or contributed by the State of Nevada for the formation or continuance
of the Association.

Sec. 51. NRS 686B.290 is hereby amended to
read as follows:

686B.290 1. At the time the Association files a
notice of intent to qualify as a domestic stock insurer, it must give notice of
its intent to all participating insurers and all insureds [in]on a form approved by the
Commissioner. The notice to each insured must state the total amount of stock
to be issued and the amount of shares to which he is entitled.

2. Any participating insurer or insured may, within 30
days after the date of the notice, apply to the Division for a hearing
concerning the Associations ability to qualify as a domestic insurer, the
valuation of capital and surplus ,
or the proposed number and distribution of shares of stock.

Sec. 52. NRS 686B.320 is hereby amended to
read as follows:

686B.320 Upon determining that [an]the Association has
complied with NRS 686B.280 to 686B.310, inclusive, and all other requirements
applicable to domestic stock insurers, the Commissioner may issue to the
Association a certificate of authority to transact business as a domestic stock
insurer .[to
become effective the next following January 1.]

Sec. 53. NRS 687A.033 is hereby amended to
read as follows:

687A.033 1. Covered claim means an unpaid claim or
judgment, including a claim for unearned premiums, which arises out of and is
within the coverage of an insurance policy to which this chapter applies issued
by an insurer which becomes an insolvent insurer, if one of the following
conditions exists:

(a) The claimant or insured, if a natural person, is a
resident of this state at the time of the insured event.

(b) The claimant or insured, if other than a natural
person, maintains its principal place of business in this state at the time of
the insured event.

(c) The property from which the first party property
damage claim arises is permanently located in this state.

(d) The claim is not a covered claim pursuant to the
laws of any other state and the premium tax imposed on the insurance policy is
payable in this state pursuant to NRS 680B.027.

2. The term does not include:

(a) An amount that is directly or indirectly due a
reinsurer, insurer, insurance pool or underwriting association, as recovered by
subrogation, indemnity or contribution, or otherwise.

(b) That part of a loss which would not be payable
because of a provision for a deductible or a self-insured retention specified
in the policy.

(c) Except as otherwise provided in this paragraph, any
claim filed with the Association [after:

(1) Eighteen]:

(1)
More than 18 months after the date of the order of liquidation;
or

(2) [The]After the final date
set by the court for the filing of claims against the liquidator or receiver of
the insolvent insurer,

whichever is earlier. The provisions of this paragraph do not
apply to a claim for workers compensation that is reopened pursuant to the
provisions of NRS 616C.390.

(d) A claim filed with the Association for a loss that
is incurred but is not reported to the Association before the expiration of the
period specified in subparagraph (1) or (2) of paragraph (c).

(e) An obligation to make a supplementary payment for
adjustment or attorneys fees and expenses, court costs or interest and bond
premiums incurred by the insolvent insurer before the appointment of a liquidator,
unless the expenses would also be a valid claim against the insured.

(f) A first party or third party claim brought by or
against an insured, if the aggregate net worth of the insured and any affiliate
of the insured, as determined on a consolidated basis, is more than $25,000,000
on December 31 of the year immediately preceding the date the insurer becomes
an insolvent insurer. The provisions of this paragraph do not apply to a claim
for workers compensation. As used
in this paragraph, affiliate means a person who directly or indirectly owns
or controls, is owned or controlled by, or is under common ownership or control
with, another person. For the purpose of this definition, the terms owns, is
owned and ownership mean ownership of an equity interest, or the equivalent
thereof, of 10 percent or more.

Sec. 54. NRS 687A.060 is hereby amended to
read as follows:

687A.060 1. The Association:

(a) Is obligated to the extent of the covered claims
existing before the determination of insolvency and arising within 30 days
after the determination of insolvency, or before the expiration date of the
policy if that date is less than 30 days after the determination, or before the
insured replaces the policy or on request cancels the policy if he does so
within 30 days after the determination. The obligation of the Association to
pay a covered claim is limited to the payment of:

(1) The entire amount of the claim, if the claim
is for workers compensation pursuant to the provisions of chapters 616A to
616D, inclusive, or chapter 617 of NRS;

(2) [More than $100 but not]Not more than
$300,000 for each policy[,]
if the claim is for the return of unearned premiums; or

(3) The limit specified in a policy or $300,000,
whichever is less, for each occurrence for any covered claim other than a
covered claim specified in subparagraph (1) or (2).

(b) Shall be deemed the insurer to the extent of its
obligations on the covered claims and to that extent has any rights, duties and
obligations of the insolvent insurer as if the insurer had not become
insolvent. The rights include, without limitation, the right to seek and obtain
any recoverable salvage and to subrogate a covered claim, to the extent that
the Association has paid its obligation under the claim.

(c) Shall assess member insurers amounts necessary to
pay the obligations of the Association pursuant to paragraph (a) after an
insolvency, the expenses of handling covered claims subsequent to an
insolvency, the cost of examinations pursuant to NRS 687A.110[,]
and other expenses authorized by this chapter. The assessment of each member
insurer must be in the proportion that the net direct written premiums of the
member insurer for the calendar year preceding the
assessment bear to the net direct written premiums of all member insurers for
the same calendar year.

for the calendar year preceding the assessment bear to the
net direct written premiums of all member insurers for the same calendar year.
Each member insurer must be notified of the assessment not later than 30 days
before it is due. No member insurer may be assessed in any year an amount
greater than 2 percent of the net direct written premiums of that member
insurer for the calendar year preceding the assessment. If the maximum
assessment, together with the other assets of the Association, does not provide
in any 1 year an amount sufficient to make all necessary payments, the money
available may be prorated and the unpaid portion must be paid as soon as money
becomes available. The Association may pay claims in any order, including the
order in which the claims are received or in groups or categories. The
Association may exempt or defer, in whole or in part, the assessment of any
member insurer if the assessment would cause the financial statement of the
member insurer to reflect amounts of capital or surplus less than the minimum
amounts required for a certificate of authority by any jurisdiction in which
the member insurer is authorized to transact insurance. During the period of
deferment, no dividends may be paid to shareholders or policyholders. Deferred
assessments must be paid when payment will not reduce capital or surplus below
required minimums. Payments must be refunded to those companies receiving
larger assessments because of deferment, or, in the discretion of the company,
credited against future assessments. Each member insurer must be allowed a
premium tax credit for any amounts paid pursuant to the provisions of this
chapter:

(1) For assessments made before January 1, 1993,
at the rate of 10 percent per year for 10 successive years beginning March 1,
1996; or

(2) For assessments made on or after January 1,
1993, at the rate of 20 percent per year for 5 successive years beginning with
the calendar year following the calendar year in which the assessments are
paid.

(d) Shall investigate claims brought against the fund
and adjust, compromise, settle and pay covered claims to the extent of the
obligation of the Association and deny any other claims.

(e) Shall notify such persons as the Commissioner
directs pursuant to paragraph (a) of subsection 2 of NRS 687A.080.

(f) Shall act on claims through its employees or
through one or more member insurers or other persons designated as servicing
facilities. Designation of a servicing facility is subject to the approval of
the Commissioner, but the designation may be declined by a member insurer.

(g) Shall reimburse each servicing facility for
obligations of the Association paid by the facility and for expenses incurred
by the facility while handling claims on behalf of the Association[,]
and pay the other expenses of the Association authorized by this chapter.

2. The Association may:

(a) Appear in, defend and appeal any action on a claim
brought against the Association.

(b) Employ or retain persons necessary to handle claims
and perform other duties of the Association.

(c) Borrow money necessary to carry out the purposes of
this chapter in accordance with the plan of operation.

(d) Sue or be sued.

(e) Negotiate and become a party to contracts necessary
to carry out the purposes of this chapter.

(f) Perform other acts necessary or proper to
effectuate the purposes of this chapter.

(g) If, at the end of any calendar year, the Board of
Directors finds that the assets of the Association exceed its liabilities as
estimated by the Board of Directors for the coming year, refund to the member
insurers in proportion to the contribution of each that amount by which the
assets of the Association exceed the liabilities.

(h) Assess each member insurer equally not more than
$100 per year for administrative expenses not related to the insolvency of any
insurer.

Sec. 55. NRS 687A.090 is hereby amended to
read as follows:

687A.090 1. Any person recovering under this chapter
shall be deemed to have assigned his rights under the policy to the Association
to the extent of his recovery from the Association. Every insured or claimant
seeking the protection of this chapter shall cooperate with the Association to
the same extent as [such]the person would have been required to
cooperate with the insolvent insurer. [The Association shall
have no]Except
as otherwise provided in subsection 2, the Association does not have a cause
of action against the insured of the insolvent insurer for any sums it has paid
out.

2. The Association
may recover the amount of money paid to or on behalf of an insured of an
insolvent insurer:

(a) If the
aggregate net worth of the insured and any affiliate of the insured, as
determined on a consolidated basis, is more than $25,000,000 on December 31 of
the year immediately preceding the date the insurer becomes an insolvent
insurer; or

(b) If the
Association paid the money in error.

3. The receiver,
liquidator or statutory successor of an insolvent insurer [shall be]is bound by any settlements of covered
claims by the Association or a similar organization in another state. The court
having jurisdiction shall grant [such]those claims priority equal to that to which
the claimant would have been entitled in the absence of this chapter against
the assets of the insolvent insurer. The expenses of the Association or similar
organization in handling claims [shall]must be accorded the same priority as the
liquidators expenses.

[3.]4. The Association shall periodically file
with the receiver or liquidator of the insolvent insurer statements of the
covered claims paid by the Association and estimates of anticipated claims on
the Association, which statements shall preserve the rights of the Association
against the assets of the insolvent insurer.

5. As
used in this section, affiliate means a person who directly or indirectly
owns or controls, is owned or controlled by, or is under common ownership or
control with, another person. For the purpose of this definition, the terms
owns, is owned and ownership mean ownership of an equity interest, or the
equivalent thereof, of 10 percent or more.

Sec. 55.2.Chapter 687B of NRS is hereby
amended by adding thereto a new section to read as follows:

1. No policy
of industrial insurance that has been in effect for at least 70 days or that
has been renewed may be cancelled by the insurer before the expiration of the
agreed term or 1 year from the effective date of the policy or renewal,
whichever occurs first, except on any one of the following grounds:

(a) A failure
by the policyholder to pay a premium for the policy of industrial insurance
when due;

(b) A failure
by the policyholder to:

(1) Report
any payroll;

(2) Allow
the insurer to audit any payroll in accordance with the terms of the policy or
any previous policy issued by the insurer; or

(3) Pay
any additional premium charged because of an audit of any payroll as required
by the terms of the policy or any previous policy issued by the insurer;

(c) A material
failure by the policyholder to comply with any federal or state order
concerning safety or any written recommendation of the insurers designated
representative for loss control;

(d) A material
change in ownership of the policyholder or any change in the policyholders
business or operations that:

(1) Materially
increases the hazard for frequency or severity of loss;

(2) Requires
additional or different classifications for the calculation of premiums; or

(3) Contemplates
an activity that is excluded by any reinsurance treaty of the insurer;

(e) A material
misrepresentation made by the policyholder; or

(f) A failure
by the policyholder to cooperate with the insurer in conducting an
investigation of a claim.

2. An insurer
shall not cancel a policy of industrial insurance pursuant to paragraph (a),
(b), (e) or (f) of subsection 1 except upon 10 days written notice submitted
by the insurer to the policyholder.

3. Except as
otherwise provided in this subsection, an insurer shall not cancel a policy of
industrial insurance pursuant to paragraph (c) or (d) of subsection 1 except
upon 30 days written notice by the insurer to the policyholder. An insurer is
not required to provide a written notice to a policyholder pursuant to this
subsection if the policyholder and the insurer consent to the cancellation of
the policy of industrial insurance and to the reissuance of another policy of
industrial insurance effective upon a material change in the ownership or
operations of the insured. If the policyholder corrects the condition to the
satisfaction of the insurer within the period specified in the policy of
insurance, the insurer shall not cancel the policy.

4. Any written
notice submitted to a policyholder pursuant to this section must be given by
first class mail addressed to the policyholder at the address of the
policyholder set forth in the policy of industrial insurance. Evidence
indicating that a written notice specified in this section has been mailed is
sufficient proof of notice.

5. The
provisions of this section do not prohibit, during any period in which a policy
of industrial insurance is in force, any change in the premium rate required or
authorized by any law, regulation or order of the Commissioner, or otherwise
agreed upon by the policyholder and the insurer.

6. For the purposes of this section, any policy of
industrial insurance that is written for a term of more than 1 year, or any
policy of industrial insurance with no fixed date of expiration, shall be
deemed to be written for successive periods of 1 year.

687B.145 1. Any policy of insurance or endorsement
providing coverage under the provisions of NRS 690B.020 or other policy of
casualty insurance may provide that if the insured has coverage available to
him under more than one policy or provision of coverage, any recovery or
benefits may equal but not exceed the higher of the applicable limits of the
respective coverages, and the recovery or benefits must be prorated between the
applicable coverages in the proportion that their respective limits bear to the
aggregate of their limits. Any provision which limits benefits pursuant to this
section must be in clear language and be prominently displayed in the policy,
binder or endorsement. Any limiting provision is void if the named insured has
purchased separate coverage on the same risk and has paid a premium calculated
for full reimbursement under that coverage.

2. Except as otherwise provided in subsection 5,
insurance companies transacting motor vehicle insurance in this state must
offer, on a form approved by the Commissioner, uninsured and underinsured
vehicle coverage in an amount equal to the limits of coverage for bodily injury
sold to an insured under a policy of insurance covering the use of a passenger
car. The insurer is not required to reoffer the coverage to the insured in any
replacement, reinstatement, substitute or amended policy, but the insured may
purchase the coverage by requesting it in writing from the insurer. Each
renewal must include a copy of the form offering such coverage. Uninsured and
underinsured vehicle coverage must include a provision which enables the
insured to recover up to the limits of his own coverage any amount of damages
for bodily injury from his insurer which he is legally entitled to recover from
the owner or operator of the other vehicle to the extent that those damages
exceed the limits of the coverage for bodily injury carried by that owner or
operator. If an insured suffers
actual damages subject to the limitation of liability provided pursuant to NRS
41.035, underinsured vehicle coverage must include a provision which enables
the insured to recover up to the limits of his own coverage any amount of
damages for bodily injury from his insurer for the actual damages suffered by
the insured that exceed that limitation of liability.

3. An insurance company transacting motor vehicle
insurance in this state must offer an insured under a policy covering the use
of a passenger car, the option of purchasing coverage in an amount of at least
$1,000 for the payment of reasonable and necessary medical expenses resulting
from an accident. The offer must be made on a form approved by the Commissioner.
The insurer is not required to reoffer the coverage to the insured in any
replacement, reinstatement, substitute or amended policy, but the insured may
purchase the coverage by requesting it in writing from the insurer. Each
renewal must include a copy of the form offering such coverage.

4. An insurer who makes a payment to an injured person
on account of underinsured vehicle coverage as described in subsection 2 is not
entitled to subrogation against the underinsured motorist who is liable for
damages to the injured payee. This subsection does not affect the right or
remedy of an insurer under subsection 5 of NRS 690B.020 with respect to
uninsured vehicle coverage. As used in this subsection, damages means the
amount for which the underinsured motorist is alleged to be liable to the
claimant in excess of the limits of bodily injury coverage set by the
underinsured motorists policy of casualty insurance.

5. An insurer need not offer, provide or make
available uninsured or underinsured vehicle coverage in connection with a
general commercial liability policy, an excess policy, an umbrella policy or
other policy that does not provide primary motor vehicle insurance for
liabilities arising out of the ownership, maintenance, operation or use of a
specifically insured motor vehicle.

6. As used in this section:

(a) Excess policy means a policy that protects a person
against loss in excess of a stated amount or in excess of coverage provided
pursuant to another insurance contract.

(b) Passenger car has the meaning ascribed to it in
NRS 482.087.

(c) Umbrella policy means a policy that protects a person
against losses in excess of the underlying amount required to be covered by
other policies.

Sec. 55.6.NRS 687B.310 is hereby amended to
read as follows:

687B.310 1. NRS 687B.310 to 687B.420, inclusive, and section 55.2 of this act apply
to all binders and all contracts of insurance the general terms of which are
required to be approved or are subject to disapproval by the Commissioner,
except as otherwise provided by statute or by rule pursuant to subsection 3.

2. The contract may provide terms more favorable to
policyholders than are required by NRS 687B.310 to 687B.420, inclusive [.] , and section 55.2 of this act.

3. The Commissioner may by rule exempt from NRS
687B.310 to 687B.420, inclusive, and
section 55.2 of this act classes of insurance contracts where the
policyholders do not need protection against arbitrary termination.

4. The rights provided by NRS 687B.310 to 687B.420,
inclusive, and section 55.2 of
this act are in addition to and do not prejudice any other rights
the policyholder may have at common law or under other statutes.

5. NRS 687B.310 to 687B.420, inclusive, and section 55.2 of this act do
not prevent the rescission or reformation of any life or health insurance
contract not otherwise denied by the terms of the contract or by any other
statute.

6. Any notice to an insured required pursuant to NRS
687B.320 to 687B.350, inclusive, and
section 55.2 of this act must be personally delivered to the
insured or mailed first class or certified to the insured at his address last
known by the insurer. The notice must state the effective date of the
cancellation or nonrenewal and be accompanied by a written explanation of the
specific reasons for the cancellation or nonrenewal.

Sec. 55.8.NRS 687B.320 is hereby amended to
read as follows:

687B.320 1. [No]Except as otherwise provided in
subsection 3, no insurance policy that has been in effect for at
least 70 days or that has been renewed may be cancelled by the insurer [prior
to]before the
expiration of the agreed term or 1 year from the effective date of the policy
or renewal, whichever [is less,]occurs first, except on any one of the
following grounds:

(a) Failure to pay a premium when due;

(b) Conviction of the insured of a crime arising out of
acts increasing the hazard insured against;

(c) Discovery of fraud or material misrepresentation in
the obtaining of the policy or in the presentation of a claim thereunder;

which occurred after the first effective date of the current
policy and substantially and materially increases the hazard insured against;

(e) A material change in the nature or extent of the
risk, occurring after the first effective date of the current policy, which
causes the risk of loss to be substantially and materially increased beyond
that contemplated at the time the policy was issued or last renewed;

(f) A determination by the Commissioner that
continuation of the insurers present volume of premiums would jeopardize the
insurers solvency or be hazardous to the interests of policyholders of the
insurer, its creditors or the public; or

(g) A determination by the Commissioner that the
continuation of the policy would violate, or place the insurer in violation of,
any provision of the Code.

2. No cancellation under subsection 1 is effective
until in the case of paragraph (a) of subsection 1 at least 10 days and in the
case of any other paragraph of subsection 1 at least 30 days after the notice
is delivered or mailed to the policyholder.

3. The
provisions of this section do not apply to a policy of industrial insurance.

Sec. 56. NRS 687B.350 is hereby amended to
read as follows:

687B.350 1. [An]Except as otherwise provided in
subsection 2, an insurer shall not renew a policy on different
terms, including different rates, unless the insurer notifies the insured in
writing of the different terms or rates at least 30 days before [those
terms or rates become effective.]the expiration of the policy. If the insurer [offers
or purports to]fails to provide adequate and timely notice, the insurer
shall renew the policy [but on different terms,
including different rates, the policyholder may, for 30 days after he receives
notice of the changes in the policy, cancel the policy. If he elects to cancel,
the insurer shall refund to him the excess of the premium paid by him above the
pro rata premium for the expired portion of the new term.] at the expiring terms and rates:

(a) For a
period that is equal to the expiring term if the agreed term is 1 year or less;
or

(b) For 1
year if the agreed term is more than 1 year.

2. The
provisions of this section do not apply to a policy of industrial insurance.

Sec. 56.1.NRS 687B.360 is hereby amended to
read as follows:

687B.360 If a notice of cancellation or nonrenewal
under NRS 687B.310 to 687B.420, inclusive, and section 55.2 of this act does not state
with reasonable precision the facts on which the insurers decision is based,
the insurer shall supply that information within 6 days after receipt of a
written request by the policyholder. No notice is effective unless it contains
adequate information about the policyholders right to make such a request.

Sec. 56.3.NRS 687B.370 is hereby amended to
read as follows:

687B.370 Except for a notice of cancellation for the
failure to pay a premium when due, no notice required pursuant to NRS 687B.310
to 687B.420, inclusive, and
section 55.2 of this act is effective unless it contains adequate
instructions enabling the policyholder to apply for insurance through any
voluntary or mandatory risk-sharing plan established pursuant
to NRS 686B.180 and 686B.200 existing at the time of the notice, for which the
policyholder may be eligible.

pursuant to NRS 686B.180 and 686B.200 existing at the time of
the notice, for which the policyholder may be eligible.

Sec. 56.5.NRS 687B.380 is hereby amended to
read as follows:

687B.380 There is no liability on the part of and no
cause of action of any nature may arise against any insurer, its authorized
representative, its agents, its employees, or any person furnishing to the
insurer information as to reasons for cancellation or nonrenewal, for any
statement made by them in complying with NRS 687B.310 to 687B.420, inclusive, and section 55.2 of this act or
for the providing of information pertaining thereto.

Sec. 56.7.NRS 688A.361 is hereby amended to
read as follows:

688A.361 No contract of annuity may be delivered or
issued for delivery in this state unless it contains in substance the following
provisions, or corresponding provisions which in the opinion of the
Commissioner are at least as favorable to the contract holder:

1. A statement that upon cessation of payment of
considerations under a contract, or
upon receipt of a written request submitted by an owner of a contract, the
company willgrant a
paid-up annuity benefit on a plan stipulated in the contract of such value as
is specified in NRS 688A.3631 to 688A.3637, inclusive, and 688A.366;

2. If a contract provides for a lump-sum settlement at
maturity or any other time, a statement that upon surrender of the contract at
or before the commencement of any annuity payments, the company will pay in
lieu of any paid-up annuity benefit a cash surrender benefit of an amount
specified in NRS 688A.3631, 688A.3633, 688A.3637 and 688A.366, and that the
company [reserves]may reserve the right to defer the payment of
such cash surrender benefit for a period of not more than 6 months after demand therefor
with surrender of the contract [;] if the company submits a written request to and receives
written approval for the deferral from the Commissioner. The request must
address the necessity and equitability to all policyholders of the deferral;

3. A statement of the mortality table, if any, and
interest rates used in calculating any minimum paid-up annuity, cash surrender
or death benefits which are guaranteed under the contract, together with
sufficient information to determine the amounts of those benefits; and

4. A statement that any paid-up annuity, cash
surrender or death benefits which may be available under the contract are not
less than the minimum benefits required by any statute of the state in which
the contract is delivered and an explanation of the manner in which such
benefits are altered by the existence of any additional amounts credited by the
company to the contract, any indebtedness to the company on the contract or any
prior withdrawals from or partial surrenders of the contract,

except that any deferred annuity contract may provide that if
no considerations have been received under a contract for a period of 2 full
years, and the portion of the paid-up annuity benefit at maturity on the plan
stipulated in the contract arising from considerations paid before that period
would be less than $20 monthly, the company may terminate the contract by
payment in cash of the then present value of such portion of the paid-up
annuity benefit, calculated on the basis of the mortality table, if any, and
interest rate specified in the contract for determining the paid-up annuity
benefit, and by such payment shall be relieved of any further obligation under
the contract.

688A.363 1.
The minimum values, specified in NRS 688A.3631 to 688A.3637,
inclusive, and 688A.366, of any paid-up annuity, cash surrender or death benefits
available under an annuity contract [shall]must be based upon
minimum nonforfeiture amounts as defined in this section.

[1.]2. With respect to contracts providing for
flexible considerations, the minimum nonforfeiture amount for any time at or before
the commencement of any annuity payments is equal to an accumulation up to such
time at a rate of interest [of 3 percent per annum of percentages of the net
considerations paid before such time,]calculated pursuant to subsection 3,
which must be decreased by the sum of:

(a) Any prior withdrawals from or partial surrenders of
the contract, accumulated at a rate of interest [of 3 percent per annum;
and]
calculated pursuant to subsection 3;

(b) An
annual charge in the amount of $50, accumulated at rates of interest calculated
pursuant to subsection 3;

(c) Any
premium tax paid by the company for the contract, accumulated at rates of
interest calculated pursuant to subsection 3; and

(d) The
amount of any indebtedness to the company on the contract, including interest
due and accrued .[,
and increased by any existing additional amounts credited by the company to the
contract.]

The net considerations for a given contract year used to
define the minimum nonforfeiture amount [shall]must be an amount [not
less than zero and shall be]that is equal to 87.5 percent of the [corresponding]
gross considerations credited to the contract during that contract year .[less an annual contract
charge of $30 and a collection charge of $1.25 per consideration credited to
the contract during that contract year. The percentages of net considerations
shall be 65 percent of the net consideration for the first contract year and
87.5 percent of the net considerations for the second and later contract years,
except that the percentage shall be 65 percent of the portion of the total net
consideration for any renewal contract year which exceeds by not more than 2
times the sum of those portions of the net considerations in all prior contract
years for which the percentage was 65 percent.

2. With
respect to contracts providing for fixed scheduled considerations, minimum
nonforfeiture amounts shall be calculated on the assumption that considerations
are paid annually in advance and shall be defined as for contracts with
flexible considerations which are paid annually, with the following exceptions:

(a) The
portion of the net consideration for the first contract year to be accumulated
shall be the sum of 65 percent of the net consideration for the first contract
year plus 22.5 percent of the excess of the net consideration for the first
contract year over the lesser of the net considerations for the second and
third contract years.

(b) The
annual contract charge shall be the lesser of:

(1) Thirty
dollars; or

(2) Ten
percent of the gross annual consideration.

3. With
respect to contracts providing for a single consideration, minimum
nonforfeiture amounts shall be defined as for contracts with flexible
considerations except that the percentage of net consideration used to determine
the minimum nonforfeiture amount shall be equal to 90 percent and the net
consideration shall be the gross consideration less a contract charge of $75.]

3. For the
purpose of this section, the rate of interest used to determine the minimum
nonforfeiture amounts must be an annual rate of interest determined as the
lesser of 3 percent per annum or a rate specified in the contract if the rate
is calculated in accordance with regulations adopted by the Commissioner,
except that at no time may the resulting rate be less than 1 percent per annum.

Sec. 57. NRS 690B.050 is hereby amended to
read as follows:

690B.050 1. Each insurer which issues a policy of
insurance covering the liability of a physician licensed under chapter 630 of
NRS or an osteopathic physician licensed under chapter 633 of NRS for a breach
of his professional duty toward a patient shall , within 30 days after a claim is closed under the policy,
submit a report to the Commissioner [within 30 days each
settlement or award made or judgment rendered by reason of a claim, giving the]concerning the claim. The report
must include, without limitation:

(a) The name
and address of the claimant and [physician and] the insured under the policy;

(b) A
statement setting forth the circumstances of the case[.

2.];

(c) Information
indicating whether any payment was made on the claim and the amount of the payment,
if any; and

(d) The
information specified in subsection 2 of NRS 679B.144.

2. An insurer who fails to comply with the
provisions of subsection 1 is subject to the imposition of an administrative
fine pursuant to NRS 679B.460.

3. The
Commissioner shall , within 30
days after receiving a report from an insurer pursuant to this section, submit
a report to the Board of Medical Examiners or the state board of
osteopathic medicine, as applicable, [within 30 days after
receiving the report of the insurer, each claim made and each settlement, award
or judgment.]
setting forth the information provided to the Commissioner by the insurer
pursuant to this section.

Sec. 57.5. NRS 690B.100 is hereby
amended to read as follows:

690B.100 As used in NRS 690B.100 to 690B.180,
inclusive, unless the context otherwise requires:

1. Home means a structure used primarily for
residential purposes and includes, without limitation:

(a) A single-family dwelling;

(b) A unit in a multiple-family structure;

(c) A mobile home; and

(d) The common elements of a common-interest community,
as defined in NRS 116.110318, and any appurtenance to the common elements.

2. Insurance for home protection means a contract of
insurance, which affords coverage over a specified term for a predetermined
fee, under which a person, other than the manufacturer, builder, seller or
lessor of the home, agrees to repair, replace or indemnify from the cost of
repair or replacement based upon the failure of any structure, component,
system or appliance of the home. The term does not include [a]:

(a) A contract
which insures against any consequential losses caused by the defects or
failures.

(b) An annual
home service agreement on household appliances, systems and components if the
agreement principally provides for service, repair or replacement due to normal
wear and tear or inherent defect.

Such agreements may
include provisions for incidental indemnity or for service or repair of roof
leaks.

Sec. 58. Chapter 692C of NRS is hereby
amended by adding thereto the provisions set forth as sections 59 to 65,
inclusive, of this act.

Sec. 59. Acquisition means any agreement, arrangement or activity, the
consummation of which results in a person directly or indirectly acquiring the
control of another person. The term includes, but is not limited to:

1. The
acquiring of a voting security;

2. The acquiring
of any asset;

3. Bulk
reinsurance; and

4. A merger.

Sec. 60. Involved insurer includes an insurer that:

1. Acquires a
person or is acquired by a person;

2. Is
affiliated with an insurer that acquires a person or is acquired by a person;
or

3. Is the
result of a merger.

Sec. 61. The provisions of this chapter apply to any acquisition in which a change
in control of an insurer who is authorized to do business in this state occurs,
except:

1. An
acquisition that is subject to approval or disapproval by the Commissioner
pursuant to NRS 692C.180 to 692C.250, inclusive.

2. A purchase
of securities solely for investment purposes if the securities are not used for
voting or not otherwise used to cause or attempt to cause a substantial
lessening of competition in any insurance market in this state, except that, if
a purchase of securities creates a presumption of control of the insurer
pursuant to subsection 2 of NRS 692C.050, the purchase is not solely for
investment purposes unless the Commissioner of insurance of the insurers state
of domicile:

(a) Accepts a
disclaimer of control or affirmatively finds that control does not exist; and

(b) Submits the
accepted disclaimer or a statement setting forth the affirmative finding to the
Commissioner.

3. An
acquisition of a person by another person if:

(a) Each of
those persons is not directly or through an affiliate primarily engaged in the
business of insurance; and

(b) At least 30
days before the effective date of the acquisition, a notice is filed with the
Commissioner in accordance with section 62 of this act, if required.

4. An
acquisition by a person of an affiliate of that person.

5. An
acquisition that does not immediately cause:

(a) The
combined market share of the involved insurers to exceed 5 percent of the total
market;

(b) An increase
in any market share; or

(c) For any
market:

(1) The
combined market share of the involved insurers to exceed 12 percent of the
total market; and

(2) The
market share to increase by more than 2 percent of the total market.

As used in this
subsection, market means direct written premiums in this state for a line of
authority set forth in the annual statement required to be filed by insurers
authorized to do business in this state.

6. An
acquisition for which, solely because of the effect of the acquisition on ocean
marine insurance, a notification is required pursuant to this section.

7. An
acquisition of an insurer whose domiciliary commissioner of insurance:

(a) Determines
that:

(1) The
insurer is in a failing condition;

(2) A
feasible alternative for improving that condition does not exist; and

(3) The
public benefit received from improving that condition through the acquisition
of the insurer outweighs the public benefit received from increasing
competition; and

(b) Submits his
determination made pursuant to paragraph (a) to the Commissioner.

Sec. 62. 1. An acquisition to which the provisions of section 61 of this act
apply is subject to an order issued pursuant to section 64 of this act unless:

(a) The
acquiring person files a notice of acquisition pursuant to this section; and

(b) The waiting
period specified in subsection 4 has expired.

2. The
Commissioner shall prescribe the form of the notice required pursuant to
subsection 1. A notice of acquisition filed pursuant to this section must
include:

(a) The
information required by the National Association of Insurance Commissioners
relating to any market that, pursuant to subsection 5 of section 61 of this
act, causes the acquisition not to be exempted from the provisions of this
section; and

(b) Any other
material or information required by the Commissioner to determine whether or
not the proposed acquisition, if consummated, would violate the provisions of
section 63 of this act.

3. The
information required pursuant to subsection 2 may include the opinion of an
economist relating to the competitive effect of the acquisition on the business
of insurance in this state if the opinion is accompanied by a summary of the
education and experience of the economist and a statement indicating his
ability to provide an informed opinion.

4. Except as
otherwise provided in subsection 5, the waiting period for an acquisition
required pursuant to subsection 1 begins on the date the Commissioner receives
the notice filed pursuant to subsection 1 and ends on the expiration of 30 days
after that date or on the expiration of a shorter period prescribed by the
Commissioner, whichever is earlier.

5. Before the
expiration of the waiting period specified in subsection 4, the Commissioner
may, not more than once, require a person to submit additional information
relating to the proposed acquisition. If the Commissioner requires the
submission of additional information, the waiting period for the acquisition
ends upon the expiration of 30 days after the Commissioner receives the
additional information or upon the expiration of a shorter period prescribed by
the Commissioner, whichever is earlier.

Sec. 63. 1. The Commissioner may issue an order pursuant to section 64 of this
act relating to an acquisition if:

(a) The effect
of the acquisition may substantially lessen competition in any line of
insurance in this state or tend to create a monopoly; or

(b) The
acquiring person fails to file sufficient materials or information pursuant to
section 62 of this act.

2. In
determining whether to issue an order pursuant to subsection 1, the
Commissioner shall consider the standards set forth in the Horizontal Merger
Guidelines issued by the United States Department of Justice and the
Federal Trade Commission and in effect at the time the Commissioner receives
the notice required pursuant to section 62 of this act.

3. The
Commissioner shall not issue an order specified in subsection 1:

(a) If:

(1) The
acquisition creates substantial economies of scale or economies in the use of
resources that may not be created in any other manner; and

(2) The
public benefit received from those economies exceeds the public benefit
received from not lessening competition; or

(b) If:

(1) The
acquisition substantially increases the availability of insurance; and

(2) The
public benefit received by that increase exceeds the public benefit received
from not lessening competition.

4. The public
benefits set forth in subparagraph 2 of paragraphs (a) and (b) of subsection 3
may be considered together, as applicable, in assessing whether the public
benefits received from the acquisition exceed any benefit to competition that
would arise from disapproving the acquisition.

5. The
Commissioner has the burden of establishing a violation of the competitive
standard set forth in subsection 1.

Sec. 64. 1. Except as otherwise provided in this section, if the Commissioner
determines that an acquisition may substantially lessen competition in any line
of insurance in this state or tends to create a monopoly, he may issue an
order:

(a) Requiring
an involved insurer to cease and desist from doing business in this state
relating to that line of insurance; or

(b) Denying the
application of an acquired or acquiring insurer for a license or authority to
do business in this state.

2. The
Commissioner shall not issue an order pursuant to subsection 1 unless:

(a) He conducts
a hearing concerning the acquisition in accordance with NRS 679B.310 to
679B.370, inclusive;

(b) A notice of
the hearing is issued before the expiration of the waiting period for the
acquisition specified in section 62 of this act, but not less than 15 days
before the hearing; and

(c) The hearing
is conducted and the order is issued not later than 60 days after the
expiration of the waiting period.

3. Each order
issued pursuant to subsection 1 must include a written decision of the
Commissioner setting forth his findings of fact and conclusions of law relating
to the acquisition.

4. An order
issued pursuant to this section does not become final until 30 days after it is
issued, during which time the involved insurer may submit to the Commissioner a
plan to remedy, within a reasonable period, the anticompetitive effect of the
acquisition. As soon as practicable after receiving the plan, the Commissioner
shall, based upon the plan and any information
included in the plan, issue a written determination setting forth:

information included
in the plan, issue a written determination setting forth:

(a) The
conditions or actions, if any, required to:

(1) Eliminate
the anticompetitive effect of the acquisition; and

(2) Vacate
or modify the order; and

(b) The period
in which the conditions or actions specified in paragraph (a) must be
performed.

5. An order
issued pursuant to subsection 1 does not apply to an acquisition that is not
consummated.

6. A person
who violates a cease and desist order issued pursuant to this section during
any period in which the order is in effect is subject, at the discretion of the
Commissioner, to:

(a) The
imposition of a civil penalty of not more than $10,000 per day for each day the
violation continues;

(b) The
suspension or revocation of the persons license or certificate of authority;
or

(c) Both the
imposition of a civil penalty pursuant to paragraph (a) and the suspension or
revocation of the persons license or certificate of authority pursuant to
paragraph (b).

7. In addition
to any fine imposed pursuant to NRS 692C.480, any insurer or other person who
fails to make any filing required by sections 61 to 64, inclusive, of this act
and who fails to make a good faith effort to comply with any such requirement
is subject to a fine of not more than $50,000.

8. The
provisions of NRS 692C.430, 692C.440 and 692C.460 do not apply to an
acquisition to which the provisions of section 61 of this act apply.

Sec. 65. 1. A director or officer of an insurance holding company system who
knowingly violates, or knowingly participates in or assents to a violation of,
NRS 692C.350, 692C.360, 692C.363 or 692C.390, or who knowingly permits any
officer or agent of the insurance holding company to engage in a transaction in
violation of NRS 692C.360 or 692C.363 or to pay a dividend or make an
extraordinary distribution in violation of NRS 692C.390 shall pay, after
receiving notice and a hearing before the Commissioner, a fine of not more than
$10,000 for each violation. In determining the amount of the fine, the
Commissioner shall consider the appropriateness of the fine in relation to:

(a) The gravity
of the violation;

(b) The history
of any previous violations committed by the director or officer; and

(c) Any other
matters as justice may require.

2. Whenever it
appears to the Commissioner that an insurer or any director, officer, employee
or agent of the insurer has engaged in a transaction or entered into a contract
to which the provisions of NRS 692C.363 apply and for which the insurer has not
obtained the Commissioners approval, the Commissioner may order the insurer to
cease and desist immediately from engaging in any further activity relating to
the transaction or contract. In addition to issuing such an order, the
Commissioner may order the insurer to rescind the contract and return each
party to the contract to the position he was in before the execution of the
contract if the issuing of the order is in the best interest of:

692C.020 As used in this chapter, unless the context
otherwise requires, the words and terms defined in NRS 692C.030 to 692C.110,
inclusive, and sections 59 and 60
of this act, have the meanings ascribed to them in those
sections.

Sec. 67. NRS 692C.080 is hereby amended to
read as follows:

692C.080 Person includes an individual, corporation, limited-liability
company, partnership, association, joint stock company, trust, unincorporated
organization or any similar entity, or any combination thereof acting in
concert. The term does not include [any]:

1. Any
joint venture partnership that is exclusively engaged in owning, managing,
leasing or developing any real or tangible personal property; or

2. Any securities
broker performing no more than the usual and customary brokers function.

Sec. 68. NRS 692C.140 is hereby amended to
read as follows:

692C.140 In addition to making investments in common stock,
preferred stock, debt obligations and other securities permitted under chapter
682A of NRS, a domestic insurer may invest:

1. In common stock, preferred stock, debt obligations
and other securities of one or more subsidiaries, amounts which do not exceed
the lesser of 10 percent of the insurers assets or 50 percent of its surplus
as regards policyholders, if the insurers surplus as regards policyholders
remains at a reasonable level in relation to the insurers outstanding
liabilities and adequate to its financial needs. In calculating the amount of
such investments, the following must be included:

(a) Total money or other consideration expended and
obligations assumed in the acquisition or formation of a subsidiary, including
all organizational expenses and contributions to capital and surplus of the
subsidiary whether or not represented by the purchase of capital stock or
issuance of other securities; and

(b) All amounts expended in acquiring additional common
stock, preferred stock, debt obligations and other securities and all
contributions to the capital or surplus of a subsidiary after its acquisition
or formation.

2. Any amount in common stock, preferred stock, debt
obligations and other securities of one or more subsidiaries, if [the
insurers total liabilities, as calculated for the National Association of
Insurance Commissioners annual statement purposes, are less than 10 percent of
assets and if the insurers surplus remains as regards policyholders,
considering such investment as if it were a disallowed asset, at a reasonable
level in relation to the insurers outstanding liabilities and adequate to its
financial needs.

3. Any
amount in common stock, preferred stock, debt obligations and other securities
of one or more subsidiaries if] each subsidiary agrees to
limit its investments in any asset so that those investments will not cause the
amount of the total investment of the insurer to exceed any of the investment
limitations specified in subsection 1 or in chapter 682A of NRS. For the
purpose of this subsection, total investment of the insurer includes any
direct investment by the insurer in an asset and the insurers proportionate
share of any investment in an asset by any subsidiary of the insurer, which
must be calculated by multiplying the amount of the subsidiarys investment by
the percentage of the insurers ownership of the subsidiary.

[4.]3. Any amount in common stock, preferred
stock, debt obligations or other securities of one or more subsidiaries, with
the approval of the Commissioner, if the insurers surplus as regards
policyholders remains at a reasonable level in relation to the insurers
outstanding liabilities and adequate to its financial needs.

[5. Any amount in the common stock, preferred stock, debt
obligations or other securities of any subsidiary exclusively engaged in
holding title to or holding title to and managing or developing real or
personal property, if after considering as a disallowed asset so much of the
investment as is represented by subsidiary assets which if held directly by the
insurer would be considered as a disallowed asset, the insurers surplus as
regards policyholders will remain at a reasonable level in relation to the
insurers outstanding liabilities and adequate to its financial needs, and if
after the investment all voting securities of the subsidiary are owned by the
insurer.]

Sec. 69. NRS 692C.180 is hereby amended to
read as follows:

692C.180 1. No person other than the issuer may make
a tender for or a request or invitation for tenders of, or enter into any
agreement to exchange securities for, seek to acquire or acquire in the open market
or otherwise, any voting security of a domestic insurer if, after the
consummation thereof, he would directly or indirectly, or by conversion or by
exercise of any right to acquire, be in control of the insurer , nor may any person enter
into an agreement to merge with or otherwise acquire control of a domestic
insurer, unless, at the time any such offer, request or invitation is made or
any such agreement is entered into, or before the acquisition of those
securities if no offer or agreement is involved, he has filed with the
Commissioner and has sent to the insurer, and the insurer has sent to its
shareholders, a statement containing the information required by NRS 692C.180
to 692C.250, inclusive, and the offer, request, invitation, agreement or acquisition
has been approved by the Commissioner in the manner prescribed in this chapter.

2. For purposes of this section, a domestic insurer
includes any other person controlling a domestic insurer unless the other
person is [either] directly or through [its]his affiliates
primarily engaged in a business
other than the business of insurance. [However,]If a person is directly or through his affiliates primarily
engaged in [another]a business other than the business of insurance, he
shall , at least 60 days before
the proposed effective date of the acquisition, file a notice of
intent to acquire[,
on a form prescribed by]with the Commissioner[, at least 60 days before
the proposed effective date of the acquisition.] setting forth the information required
by section 62 of this act.

Sec. 70. NRS 692C.210 is hereby amended to
read as follows:

692C.210 1. [The]Except as otherwise provided in
subsection 5, the Commissioner shall approve any merger or other
acquisition of control referred to in NRS 692C.180 unless, after a public
hearing thereon, he finds that:

(a) After the change of control , the domestic insurer [referred to]specified in NRS
692C.180 would not be able to satisfy the requirements for the issuance of a
license to write the line or lines of insurance for which it is presently
licensed;

(b) The effect of the merger or other acquisition of
control would be substantially to lessen competition in insurance in this state
or tend to create a monopoly ;[therein;]

(c) The financial condition of any acquiring party [is
such as might]may jeopardize the financial stability of the insurer, or
prejudice the interest of its policyholders or the interests of any remaining
security holders who are unaffiliated with the acquiring party;

(d) The terms of the offer, request, invitation,
agreement or acquisition referred to in NRS 692C.180 are unfair and unreasonable
to the security holders of the insurer;

(e) The plans or proposals which the acquiring party
has to liquidate the insurer, sell its assets or consolidate or merge it with
any person, or to make any other material change in its business or corporate
structure or management, are unfair and unreasonable to policyholders of the
insurer and not in the public interest; [or]

(f) The competence, experience and integrity of those
persons who would control the operation of the insurer are such that it would
not be in the interest of policyholders of the insurer and of the public to
permit the merger or other acquisition of control[.] ; or

(g) If
approved, the merger or acquisition of control would likely be harmful or
prejudicial to the members of the public who purchase insurance.

2. The public hearing [referred to]specified in
subsection 1 must be held within 30 days after the statement required by NRS
692C.180 has been filed, and at least 20 days notice thereof must be given by
the Commissioner to the person filing the statement. Not less than 7 days
notice of the public hearing must be given by the person filing the statement
to the insurer and to [such other persons as may be]any other person designated
by the Commissioner. The insurer shall give such notice to its security
holders. The Commissioner shall make a determination within 30 days after the
conclusion of the hearing. If he determines that an infusion of capital to
restore capital in connection with the change in control is required, the requirement
must be met within 60 days after notification is given of the determination. At
the hearing, the person filing the statement, the insurer, any person to whom
notice of hearing was sent[,]
and any other person whose interests may be affected thereby may present
evidence, examine and cross-examine witnesses, and offer oral and written
arguments and , in
connection therewith , may
conduct discovery proceedings in the same manner as is presently allowed in the
district court of this state. All discovery proceedings must be concluded not
later than 3 days before the commencement of the public hearing.

3. The Commissioner may retain at the acquiring
partys expense attorneys, actuaries, accountants and other experts not
otherwise a part of his staff as may be reasonably necessary to assist him in
reviewing the proposed acquisition of control.

4. The period for review by the Commissioner must not
exceed the 60 days allowed between the filing of the notice of intent to
acquire required pursuant to
subsection 2 of NRS 692C.180 and the date of the proposed acquisition if the proposed
affiliation or change of control involves a financial institution, or an
affiliate of a financial institution, and an insured.

5. When
making a determination pursuant to paragraph (b) of subsection 1, the
Commissioner:

(a) Shall
require the submission of the information specified in subsection 2 of section
62 of this act;

(b) Shall
not disapprove the merger or acquisition of control if he finds that any of the
circumstances specified in subsection 3 of section 63 of this act exist; and

(c) May
condition his approval of the merger or acquisition of control in the manner
provided in subsection 4 of section 64 of this act.

6. If, in
connection with a change of control of a domestic insurer, the Commissioner
determines that the person who is acquiring control of the domestic insurer
must maintain or restore the capital of the domestic insurer in an amount that
is required by the laws and regulations of this state, the Commissioner shall
make the determination not later than 60 days after the notice of intent to
acquire required pursuant to subsection 2 of NRS 692C.180 is filed with the
Commissioner.

Sec. 71. NRS 692C.260 is hereby amended to
read as follows:

692C.260 1. Every insurer which is authorized to do
business in this state and which is a member of an insurance holding company system
shall register with the Commissioner, except a foreign insurer subject to
disclosure requirements and standards adopted by a statute or regulation in the jurisdiction of
its domicile which are substantially similar to those contained in NRS 692C.260
to 692C.350, inclusive.

2. Any insurer which is subject to registration under
NRS 692C.260 to 692C.350, inclusive, shall register [no]not later than September
1, 1973, or 15 days after it becomes subject to registration, whichever is
later, unless the Commissioner for good cause shown extends the time for
registration. The Commissioner may require any authorized insurer which is a
member of a holding company system which is not subject to registration under
this section to furnish a copy of the registration statement or other
information filed by [such]the insurance company with the insurance
regulatory authority of domiciliary jurisdiction.

3. Any
person within an insurance holding company system subject to registration
shall, upon request by an insurer, provide complete and accurate information to
the insurer if the information is reasonably necessary to enable the insurer to
comply with the provisions of this section.

Sec. 72. NRS 692C.270 is hereby amended to
read as follows:

692C.270 Every insurer subject to registration shall
file a registration statement on a form provided by the Commissioner, which [shall]must contain current
information about:

1. The capital structure, general financial condition,
ownership and management of the insurer and any person controlling the insurer.

2. The identity of every member of the insurance
holding company system.

3. The following agreements in force, relationships
subsisting and transactions currently outstanding between [such]the insurer and its
affiliates:

(a) Loans, other investments or purchases, sales or
exchanges of securities of the affiliates by the insurer or of the insurer by
its affiliates.

(b) Purchases, sales or exchanges of assets.

(c) Transactions not in the ordinary course of business.

(d) Guarantees or undertakings for the benefit of an
affiliate which result in an actual contingent exposure of the insurers assets
to liability, other than insurance contracts entered into in the ordinary
course of the insurers business.

(e) All management and service contracts and all
cost-sharing arrangements, other than cost allocation arrangements based upon
generally accepted accounting principles.

(f) Reinsurance agreements covering all or
substantially all of one or more lines of insurance of the ceding company.

(g) Any
dividend or other distribution made to a shareholder.

(h) Any
consolidated agreement to allocate taxes.

4. [Other]Any pledge of the insurers stock, including the stock of
any subsidiary or controlling affiliate of the insurer, for a loan made to any
member of the insurance holding company system.

5. Any
other matters concerning transactions between registered insurers
and any affiliates as may be included from time to time in any registration
forms adopted or approved by the Commissioner.

Sec. 73. NRS 692C.330 is hereby amended to
read as follows:

692C.330 1. Any person may file with the Commissioner
[a]:

(a) A disclaimer
of affiliation with any authorized insurer specified in the disclaimer; or [such
a]

(b) A
request for a termination of registration on the basis that the person does
not, or will not after taking an action specified in the request for
termination, control another person specified in the request.

2. A disclaimer
of affiliation or request for a
termination of registration specified in subsection 1 may be
filed by [such]the authorized insurer or any member of an
insurance holding company system. [The disclaimer shall
fully disclose]A disclaimer of affiliation or request for a termination of
registration filed pursuant to subsection 1 must include:

(a) A
statement indicating the number of authorized, issued and outstanding voting
securities of the person specified in the disclaimer of affiliation or request
for a termination of registration;

(b) A
statement indicating the number and percentage of shares of the person
specified in the disclaimer of affiliation or request for a termination of
registration that are owned or beneficially owned by the person disclaiming
control, and the number of those shares for which the person disclaiming
control has a direct or indirect right to acquire;

(c) A
statement setting forth all material relationships and bases for
affiliation between [such person and such insurer as well as the basis for
disclaiming such affiliation.

2.] the person specified in the disclaimer
of affiliation or request for a termination of registration and the person and
any affiliate of the person who is disclaiming control of the person specified
in the disclaimer of affiliation or request for a termination of registration;
and

(d) An
explanation of why the person who is disclaiming control does not control the
person specified in the disclaimer of affiliation or request for a termination
of registration.

3. A
request for a termination of registration filed pursuant to subsection 1 shall
be deemed granted upon filing unless the Commissioner, within 30 days after
receipt of the request for a termination of registration, notifies the person,
authorized insurer or member of an insurance holding company system that the
request is denied.

4.
After a disclaimer of affiliation has
been filed, the insurer [shall be]is relieved of any duty to register or report
under NRS 692C.260 to 692C.350, inclusive, which may arise out of the insurers
relationship with [such]the person unless the Commissioner disallows [such
a]the disclaimer.

The Commissioner [shall disallow such a]may disallow the disclaimer
only after furnishing all parties in interest with a notice and opportunity to be heard and after
making specific findings of fact to support [such]the disallowance.

Sec. 74. NRS 692C.350 is hereby amended to
read as follows:

692C.350 1.
The failure to file a registration statement or any amendment
thereto required by NRS 692C.260 to 692C.350, inclusive, within the time
specified for [such filing, shall be]the filing is a violation
of NRS 692C.260 to 692C.350, inclusive.

2. Except
as otherwise provided in subsection 3, if an insurer fails, without just cause,
to file a registration statement required pursuant to NRS 692C.270, the insurer
shall, after receiving notice and a hearing, pay a civil penalty of $100 for
each day the insurer fails to file the registration statement. The civil
penalty may be recovered in a civil action brought by the Commissioner. Any
civil penalty paid pursuant to this subsection must be deposited in the State
General Fund.

3. The
maximum civil penalty that may be imposed pursuant to subsection 2 is $20,000.
The Commissioner may reduce the amount of the civil penalty if the insurer
demonstrates to the satisfaction of the Commissioner that the payment of the
civil penalty would impose a financial hardship on the insurer.

4. Any
officer, director or employee of an insurance holding company system who
willfully and knowingly subscribes to or makes or causes to be made any false
statement, false report or false filing with the intent to deceive the
Commissioner in the performance of his duties pursuant to NRS 692C.260 to
692C.350, inclusive, is guilty of a category D felony and shall be punished as
provided in NRS 193.130. The officer, director or employee is personally liable
for any fine imposed against him pursuant to that section.

Sec. 75. NRS 692C.363 is hereby amended to
read as follows:

692C.363 1. A domestic insurer shall not enter into
any of the following transactions with an affiliate unless the insurer has
notified the Commissioner in writing of its intention to enter into the
transaction at least 60 days previously, or such shorter period as the
Commissioner may permit, and the Commissioner has not disapproved it within
that period:

(a) A sale, purchase, exchange, loan or extension of
credit, guaranty or investment if the transaction equals at least:

(1) With respect to an insurer other than a life
insurer, the lesser of 3 percent of the insurers admitted assets or 25 percent
of surplus as regards policyholders; or

(2) With respect to a life insurer, 3 percent of
the insurers admitted assets,

computed as of December 31 next preceding the transaction.

(b) A loan or extension of credit to any person who is
not an affiliate, if the insurer makes the loan or extension of credit with the
agreement or understanding that the proceeds of the transaction, in whole or in
substantial part, are to be used to make loans or extensions of credit to, to
purchase assets of, or to make investments in, any affiliate of the insurer if
the transaction equals at least:

(1) With respect to insurers other than life
insurers, the lesser of 3 percent of the insurers admitted assets or 25
percent of surplus as regards policyholders; or

(2) With respect to life insurers, 3 percent of
the insurers admitted assets,

computed as of December 31 next preceding the transaction.

(c) An agreement for reinsurance or a modification
thereto in which the premium for reinsurance or a change in the insurers
liabilities equals at least 5 percent of the insurers surplus as regards
policyholders as of December 31 next preceding the transaction, including an
agreement which requires as consideration the transfer of assets from an
insurer to a nonaffiliate, if an agreement or understanding exists between the
insurer and nonaffiliate that any portion of those assets will be transferred
to an affiliate of the insurer.

(d) An agreement for management, contract for service,
guarantee or arrangement to share costs.

(e) A guaranty
made by a domestic insurer, except that a guaranty that is quantifiable as to
amount is not subject to the provisions of this subsection unless the guaranty
exceeds the lesser of one-half of 1 percent of the admitted assets of the
domestic insurer or 10 percent of its surplus as regards policyholders as of
December 31 next preceding the guaranty.

(f) Except
as otherwise provided in subsection 3, a direct or indirect acquisition of or
investment in a person who controls the domestic insurer or an affiliate of the
domestic insurer in an amount that, when added to its present holdings, exceeds
2.5 percent of the domestic insurers surplus to policyholders.

(g) A material
transaction, specified by regulation, which the Commissioner determines may
adversely affect the interest of the insurers policyholders.

2. This section does not authorize or permit any
transaction which, in the case of an insurer not an affiliate, would be
contrary to law.

3. The
provisions of paragraph (f) of subsection 1 do not apply to a direct or
indirect acquisition of or investment in:

(a) A
subsidiary acquired in accordance with this section or NRS 692C.140; or

(b) A
nonsubsidiary insurance affiliate that is subject to the provisions of this
chapter.

Sec. 76. (Deleted by amendment.)

Sec. 77. NRS 692C.390 is hereby amended to
read as follows:

692C.390 [No]

1. An insurer
subject to registration under NRS 692C.260 to 692C.350, inclusive, shall not pay any extraordinary
dividend or make any other extraordinary distribution to its shareholders
until:

[1.](a) Thirty days after the Commissioner has
received notice of the declaration thereof and has not within [such]that period
disapproved [such]the payment; or

[2.](b) The Commissioner [shall have approved such]approves the payment
within [such]the 30-day period.

2. A
request for approval of an extraordinary dividend or any other extraordinary
distribution pursuant to subsection 1 must include:

(a) A
statement indicating the amount of the proposed dividend or distribution;

(b) The
date established for the payment of the proposed dividend or distribution;

(c) A
statement indicating whether the proposed dividend or distribution is to be
paid in the form of cash or property and, if it is to be paid in the form of property, a description of the property,
its cost and its fair market value together with an explanation setting forth
the basis for determining its fair market value;

paid in the form
of property, a description of the property, its cost and its fair market value
together with an explanation setting forth the basis for determining its fair
market value;

(d) A copy
of a work paper or other document setting forth the calculations used to
determine that the proposed dividend or distribution is extraordinary,
including:

(1)
The amount, date and form of payment of each regular dividend or distribution
paid by the insurer, other than any distribution of a security of the insurer,
within the 12 consecutive months immediately preceding the date established for
the payment of the proposed dividend or distribution;

(2)
The amount of surplus, if any, as regards policyholders, including total
capital and surplus, as of December 31 next preceding;

(3)
If the insurer is a life insurer, the amount of any net gains obtained from the
operations of the insurer for the 12-month period ending December 31 next
preceding;

(4)
If the insurer is not a life insurer, the amount of net income of the insurer
less any realized capital gains for the 12-month period ending on the December
31 of the year next preceding and the two consecutive 12-month periods
immediately preceding that period; and

(5)
If the insurer is not a life insurer, the amount of each dividend paid by the
insurer to shareholders, other than a distribution of any securities of the
insurer, during the preceding 2 calendar years;

(e) A
balance sheet and statement of income for the period beginning on the date of
the last annual statement filed by the insurer with the Commissioner and ending
on the last day of the month immediately preceding the month in which the
insurer files the request for approval; and

(f) A
brief statement setting forth:

(1)
The effect of the proposed dividend or distribution upon the insurers surplus;

(2)
The reasonableness of the insurers surplus in relation to the insurers
outstanding liabilities; and

(3)
The adequacy of the insurers surplus in relation to the insurers financial
requirements.

3. Each
insurer specified in subsection 1 that pays an extraordinary dividend or makes
any other extraordinary distribution to its shareholders shall, within 15 days
after declaring the dividend or making the distribution, report that fact to
the Commissioner. The report must include the information specified in
paragraph (d) of subsection 2.

Sec. 78. NRS 692C.420 is hereby amended to
read as follows:

692C.420 1.
All information, documents and copies thereof obtained by or
disclosed to the Commissioner or any other person in the course of an
examination or investigation made pursuant to NRS 692C.410, and all information
reported pursuant to NRS 692C.260 to 692C.350, inclusive, [shall]must be given confidential
treatment and [shall not be]is not subject to subpoena and [shall]must not be made
public by the Commissioner or any other person, except to insurance departments
of other states, without the prior written consent of the insurer to which it
pertains unless the Commissioner, after giving the insurer and its affiliates
who would be affected thereby[,]
notice and an opportunity
to be heard, determines that the interests of policyholders, shareholders or
the public will be served by the publication thereof, in
which event he may publish all or any part thereof in [such] any manner as he
may deem appropriate.

publication thereof, in which event he may publish all or any
part thereof in [such]any manner as he may deem appropriate.

2. The
Commissioner or any person who receives any documents, materials or other
information while acting under the authority of the Commissioner must not be
permitted or required to testify in a private civil action concerning any
information, document or copy thereof specified in subsection 1.

3. The
Commissioner may share or receive any information, document or copy thereof
specified in subsection 1 in accordance with section 1 of this act. The sharing
or receipt of the information, document or copy pursuant to this subsection
does not waive any applicable privilege or claim of confidentiality in the
information, document or copy.

Sec. 78.3.NRS 693A.495 is hereby
amended to read as follows:

693A.495 1. No director, officer, employee or agent
of the converting mutual, or any other person, may receive any fee, commission
or other valuable consideration, other than his usual regular salary and
compensation, for aiding, promoting or assisting in a plan of conversion except
as set forth in the plan of conversion approved by the Commissioner.

2. Subsection 1 does not prohibit a management or employee incentive
compensation program that is contained in the plan of conversion and approved
by the Commissioner to be adopted upon conversion to the new stock insurer or
prohibit such a program to be adopted later by the new stock insurer.

3. Subsection 1 does not prohibit the payment of reasonable
fees and compensation to attorneys, accountants, actuaries and investment
bankers for services performed in the independent practice of their professions
if the person is also a member of the board of directors of the converting
mutual.

Sec. 78.5.NRS 693A.625 is hereby
amended to read as follows:

693A.625 1. All the initial shares of the capital
stock of a reorganized stock insurer must be issued to the mutual insurance
holding company or to [a single]one or more intermediate stock holding [company.] companies.

2. Policyholders of a domestic mutual insurer that has
been reorganized are members of the mutual insurance holding company, and their
voting rights must be determined in accordance with the articles of
incorporation and bylaws of the mutual insurance holding company. The mutual
insurance holding company shall provide its members with the same membership
rights as were provided to policyholders of the mutual insurer immediately
before reorganization. The reorganization must not reduce, limit or otherwise
affect the number or identity of the policyholders who may become members of
the mutual insurance holding company or secure for managerial personnel any
unfair advantage through or connected with the reorganization.

3. A mutual insurance holding company or an
intermediate stock holding company formed pursuant to NRS 693A.550 to 693A.665,
inclusive:

(a) Must not be authorized to transact the business of
insurance;

(b) Is subject to the jurisdiction of the Commissioner,
who shall ensure that policyholder interests are protected; and

(c) Shall be deemed to be an insurer for the purposes
of chapter 696B of NRS.

4. An intermediate stock holding company formed
pursuant to NRS 693A.550 to 693A.665, inclusive, shall be deemed to be a mutual
insurance holding company subject to the provisions of NRS 693A.400 to
693A.540, inclusive.

5. A mutual insurance holding company formed pursuant
to NRS 693A.550 to 693A.665, inclusive:

(a) Shall not issue stock.

(b) Shall invest in insurers not less than 50 percent
of its net worth as determined by generally accepted accounting practices.

6. The aggregate pledges and encumbrances of the
assets of a mutual insurance holding company must not affect more than 49
percent of the mutual insurance holding companys stock in an intermediate
stock holding company or a reorganized stock insurer.

7. If any proceeding under chapter 696B of NRS is
brought against a reorganized stock insurer, the mutual insurance holding
company and each intermediate
stock holding company must be named parties to the proceeding. All the assets
of the mutual insurance holding company and [the]each intermediate
stock holding company shall be deemed assets of the estate of the reorganized
stock insurer to the extent necessary to satisfy claims against the reorganized
stock insurer.

8. No distribution to members of a mutual insurance
holding company may occur without the prior written approval of the
Commissioner. The Commissioner may give such approval only if he is satisfied
that the distribution is fair and equitable to policyholders as members of the
mutual insurance holding company.

9. No solicitation for the sale of the stock of an
intermediate stock holding company or a reorganized stock insurer may be made
without the prior written approval of the Commissioner.

10. A mutual insurance holding company or an
intermediate stock holding company may not voluntarily dissolve without the
approval of the Commissioner.

Sec. 78.7.NRS 693A.640 is hereby
amended to read as follows:

693A.6401. No director, officer, employee or
agent of the mutual insurer, or any other person, may receive any fee,
commission or other valuable consideration, other than his usual regular salary
and compensation, for aiding, promoting or assisting in a plan of
reorganization except as set forth in the plan of reorganization approved by
the Commissioner.

2. Subsection 1 does not prohibit a management or employee incentive
compensation program that is contained in the plan of reorganization and
approved by the Commissioner to be adopted upon reorganization to the
reorganized stock insurer or prohibit such a program to be adopted later by the
reorganized stock insurer.

3. Subsection 1 does not prohibit the payment of reasonable
fees and compensation to attorneys, accountants, actuaries and investment
bankers for services performed in the independent practice of their professions
if the person is also a member of the board of directors of the mutual insurer.

Sec. 79. NRS 694C.050 is hereby amended to
read as follows:

694C.050 Association captive insurer means a captive
insurer that only insures risks of the member organizations of an association
and the affiliated companies of those members, including groups formed pursuant
to the Product Liability Risk Retention Act of 1981, as amended, 15 U.S.C. §§
3901 et seq. , if:

1. The
association or the member organizations of the association:

(a) Own,
control or hold with the power to vote all the outstanding voting securities of
the association captive insurer, if the association captive insurer is
incorporated as a stock insurer; or

(b) Have
complete voting control over the captive insurer, if the captive insurer is
formed as a mutual insurer; and

2. The
member organizations of the association collectively constitute all the
subscribers of the captive insurer, if the captive insurer is formed as a
reciprocal insurer.

Sec. 80. NRS 694C.450 is hereby amended to
read as follows:

694C.450 1. Except as otherwise provided in this
section, a captive insurer shall pay to the Division, not later than March 1 of
each year, a tax at the rate of:

(a) Two-fifths of 1 percent on the first $20,000,000 of
its net direct premiums;

(b) One-fifth of 1 percent on the next $20,000,000 of its
net direct premiums; and

(c) Seventy-five thousandths of 1 percent on each
additional dollar of its net direct premiums.

2. Except as otherwise provided in this section, a
captive insurer shall pay to the Division, not later than March 1 of each year,
a tax at a rate of:

(a) Two hundred twenty-five thousandths of 1 percent on
the first $20,000,000 of revenue from assumed reinsurance premiums;

(b) One hundred fifty thousandths of 1 percent on the
next $20,000,000 of revenue from assumed reinsurance premiums; and

(c) Twenty-five thousandths of 1 percent on each
additional dollar of revenue from assumed reinsurance premiums.

The tax on reinsurance premiums pursuant to this subsection
must not be levied on premiums for risks or portions of risks which are subject
to taxation on a direct basis pursuant to subsection 1. A captive insurer is
not required to pay any reinsurance premium tax pursuant to this subsection on
revenue related to the receipt of assets by the captive insurer in exchange for
the assumption of loss reserves and other liabilities of another insurer that
is under common ownership and control with the captive insurer, if the
transaction is part of a plan to discontinue the operation of the other insurer
and the intent of the parties to the transaction is to renew or maintain such
business with the captive insurer.

3. If the sum of the taxes to be paid by a captive
insurer calculated pursuant to subsections 1 and 2 is less than $5,000 in any
given year, the captive insurer shall pay a tax of $5,000 for that year.

4. Two or more captive insurers under common ownership
and control must be taxed as if they were a single captive insurer.

5. Notwithstanding any specific statute to the
contrary and except as otherwise provided in this subsection, the tax provided
for by this section constitutes all the taxes collectible pursuant to the laws
of this state from a captive insurer, and no occupation tax or other taxes may
be levied or collected from a captive insurer by this state or by any county,
city or municipality within this state, except for ad valorem taxes on real or
personal property located in this state used in the production of income by the
captive insurer.

6. Ten percent of the revenues collected from the tax
imposed pursuant to this section must be deposited with the State Treasurer for
credit to the Account for the Regulation and Supervision of Captive Insurers
created pursuant to NRS 694C.460. The remaining 90 percent of the revenues
collected must be deposited with the State Treasurer for credit to the State
General Fund.

7. A
captive insurer that is issued a license pursuant to this chapter after July 1,
2003, is entitled to receive a nonrefundable credit of $5,000 applied against
the aggregate taxes owed by the captive insurer for the first year in which the
captive insurer incurs any liability for the payment of taxes pursuant to this section.
A captive insurer is entitled to a nonrefundable credit pursuant to this
section not more than once after the captive insurer is initially licensed
pursuant to this chapter.

8. As
used in this section, unless the context otherwise requires:

(a) Common ownership and control means:

(1) In the case of a stock insurer, the direct
or indirect ownership of 80 percent or more of the outstanding voting stock of
two or more corporations by the same member or members.

(2) In the case of a mutual insurer, the direct
or indirect ownership of 80 percent or more of the surplus and the voting power
of two or more corporations by the same member or members.

(b) Net direct premiums means the direct premiums
collected or contracted for on policies or contracts of insurance written by a
captive insurer during the preceding calendar year, less the amounts paid to
policyholders as return premiums, including dividends on unabsorbed premiums or
premium deposits returned or credited to policyholders.

2. For the purposes of subsection 1, unless the context
requires that a provision apply only to insurers, any reference in those
sections to insurer must be replaced by health maintenance organization.

Sec. 81. NRS 696B.415 is hereby amended to
read as follows:

696B.415 1. Upon the
issuance of an order of liquidation with a finding of insolvency against a
domestic insurer, the Commissioner shall apply to the district court for
authority to disburse money to the Nevada Insurance Guaranty Association or the
Nevada Life and Health Insurance Guaranty Association out of the marshaled
assets of the insurer, as money becomes available, in amounts equal to
disbursements made or to be made by the Association for claims-handling expense
and covered-claims obligations upon the presentation of evidence that
disbursements have been made by the Association. The Commissioner shall apply
to the district court for authority to make similar disbursements to insurance
guaranty associations in other jurisdictions if one of the Nevada Associations
is entitled to like payment pursuant to the laws relating to insolvent insurers
in the jurisdiction in which the organization is domiciled.

2. The Commissioner, in
determining the amounts available for disbursement to the Nevada Insurance
Guaranty Association, the Nevada Life and Health Insurance Guaranty Association[,] and similar organizations in other jurisdictions, shall
reserve sufficient assets for the payment of the expenses of administration.

3. The Commissioner shall establish procedures for the
ratable allocation of disbursements to the Nevada Insurance Guaranty
Association, the Nevada Life and Health Insurance Guaranty Association[,]
and similar organizations in other jurisdictions, and shall secure from each
organization to which money is paid as a condition to advances in reimbursement
of covered-claims obligations an agreement to return to
the Commissioner, on demand, amounts previously advanced which are required to
pay claims of secured creditors and claims falling within the priorities
established in paragraph (a) or (b) of subsection 1 of NRS 696B.420.

covered-claims obligations an agreement to return to the
Commissioner, on demand, amounts previously advanced which are required to pay
claims of secured creditors and claims falling within the priorities
established in paragraph (a) or (b) of subsection 1 of NRS 696B.420.

4. The
Commissioner, as receiver for an insolvent insurer, may file a claim on behalf
of all insureds for any unearned premiums. The Nevada Insurance Guaranty
Association, the Nevada Life and Health Insurance Guaranty Association and similar
organizations in other jurisdictions shall accept the claim in lieu of
requiring each insured to file a claim for the unearned premium.

Sec. 82. NRS 696B.420 is hereby amended to
read as follows:

696B.420 1. The order of
distribution of claims from the estate of the insurer on liquidation of the
insurer must be as set forth in this section. Each claim in each class must be
paid in full or adequate money retained for the payment before the members of
the next class receive any payment. No subclasses may be established within any
class. Except as otherwise provided in subsection 2, the order of distribution
and of priority must be as follows:

(a) Administration costs and
expenses, including, but not limited to, the following:

(1) The actual and necessary
costs of preserving or recovering the assets of the insurer;

(2) Compensation for
any services rendered in the liquidation;

(3) Any necessary
filing fees;

(4) The fees and
mileage payable to witnesses; and

(5) Reasonable
attorneys fees.

(b) [Loss
claims, including any]All claims under
policies , [for
losses incurred, including third-party claims,] any claims against [the insurer]an
insured for liability for bodily injury
or for injury to or destruction of tangible property which are [not]covered
claims under policies, including any such claims of the Federal
Government or any state or local government, and any claims of the Nevada Insurance Guaranty
Association, the Nevada Life and Health Insurance Guaranty Association[,] and other similar statutory organizations in other
jurisdictions. Any claims under life insurance and annuity policies, whether
for death proceeds, annuity proceeds or investment values, must be treated as
loss claims. That portion of any loss for which indemnification is provided by
other benefits or advantages recovered or recoverable by the claimant may not
be included in this class, other than benefits or advantages recovered or
recoverable in discharge of familial obligations of support or because of
succession at death or as proceeds of life insurance, or as gratuities. No
payment made by an employer to his employee may be treated as a gratuity.

(c) Unearned premiums and
small loss claims, including claims under nonassessable policies for unearned
premiums or other premium refunds.

(d) [Claims]Except
as otherwise provided in paragraph (b), claims of the Federal Government.

(e) [Claims]Except
as otherwise provided in paragraph (b), claims of any state or local government, including, but not
limited to, a claim of a state or local government for a penalty or forfeiture.

(f) Wage debts due employees
for services performed, not to exceed [$1,000 to]an
amount equal to 2 months of monetary compensation for each employee[, that have been earned]for
services performed within 6 months before the filing of the petition for
liquidation or, if rehabilitation preceded
liquidation, within 1 year before the filing of the petition for [liquidation.]

preceded
liquidation, within 1 year before the
filing of the petition for [liquidation.]rehabilitation.
Officers of the insurer are not
entitled to the benefit of this priority. The priority set forth in this
paragraph must be in lieu of any other similar priority authorized by law as to
wages or compensation of employees.

(g) Residual classification,
including any other claims not falling within other classes pursuant to the
provisions of this section. Claims for a penalty or forfeiture must be allowed
in this class only to the extent of the pecuniary loss sustained from the act,
transaction or proceeding out of which the penalty or forfeiture arose, with
reasonable and actual costs occasioned thereby. The remainder of the claims
must be postponed to the class of claims specified in paragraph (j).

(h) Judgment claims based
solely on judgments. If a claimant files a claim and bases the claim on the
judgment and on the underlying facts, the claim must be considered by the
liquidator, who shall give the judgment such weight as he deems appropriate.
The claim as allowed must receive the priority it would receive in the absence
of the judgment. If the judgment is larger than the allowance on the underlying
claim, the remaining portion of the judgment must be treated as if it were a
claim based solely on a judgment.

(i) Interest on claims
already paid, which must be calculated at the legal rate compounded annually on
any claims in the classes specified in paragraphs (a) to (h), inclusive, from
the date of the petition for liquidation or the date on which the claim becomes
due, whichever is later, until the date on which the dividend is declared. The
liquidator, with the approval of the court, may:

(1) Make reasonable
classifications of claims for purposes of computing interest;

(3) Portions of claims
subordinated pursuant to the provisions of paragraph (g);

(4) Claims or portions
of claims the payment of which is provided by other benefits or advantages
recovered or recoverable by the claimant; and

(5) Claims not
otherwise provided for in this section.

(k) Preferred ownership
claims, including surplus or contribution notes, or similar obligations, and
premium refunds on assessable policies. Interest at the legal rate must be
added to each claim, as provided in paragraphs (i) and (j).

(l) Proprietary claims of
shareholders or other owners.

2. If there are no existing or potential claims of the
government against the estate, claims for wages have priority over any claims
set forth in paragraphs (c) to (k), inclusive, of subsection 1. The provisions
of this subsection must not be construed to require the accumulation of
interest for claims as described in paragraph (i) of subsection 1.

Sec. 82.5.NRS 697.270 is hereby amended to
read as follows:

697.270 A bail agent shall not [become a surety]act as an attorney-in-fact for an
insurer on an undertaking unless he has registered in the office
of the sheriff and with the clerk of the district court
in which the agent resides, and he may register in the same manner in any other
county.

the sheriff and with the clerk of the district court in which the
agent resides, and he may register in the same manner in any other county. Any
bail agent shall file a certified copy of his appointment by power of attorney
from each insurer which he represents as agent with each of such officers. The
bail agent shall register and file a certified copy of renewed power of
attorney annually on July 1. The clerk of the district court and the sheriff
shall not permit the registration of a bail agent unless the agent is licensed
by the Commissioner.

Sec. 83. NRS 697.290 is hereby amended to
read as follows:

697.290 Every bail agent must maintain in his office
such records of bail bonds, and such additional information as the Commissioner
may reasonably require, executed or countersigned by him to enable the public
to obtain all necessary information concerning the bail bonds for at least [1
year]3 years
after the liability of the surety has been terminated. The
records must be open to examination by the Commissioner or his representatives
at all times, and the Commissioner at any time may require the licensee to
furnish to him, in such manner or form as he requires, any information kept or
required to be kept in the records.

Sec. 83.5.NRS 697.300 is hereby amended to
read as follows:

697.300 1. A bail agent
shall not, in any bail transaction or in connection therewith, directly or
indirectly, charge or collect money or other valuable consideration from any
person except for the following purposes:

(a) To pay the premium at the
rates established by the insurer, in accordance with chapter 686B of NRS, or to
pay the charges for the bail bond filed in connection with the transaction at
the rates filed in accordance with the provisions of this Code. The rates must
be [not less than 10 percent or more than] 15 percent of the amount of the bond or $50, whichever is
greater.

(b) To provide collateral.

(c) To reimburse himself for
actual expenses incurred in connection with the transaction. Such expenses are
limited to:

(3) Travel expenses
incurred more than 25 miles from the agents principal place of business. Such
expenses:

(I) May be
billed at the rate provided for state officers and employees generally; and

(II) May not be
charged in areas where bail agents advertise a local telephone number.

(4) Expenses incurred
to verify underwriting information.

(5) Any other actual
expenditure necessary to the transaction which is not usually and customarily
incurred in connection with bail transactions.

(d) To reimburse himself, or
have a right of action against the principal or any indemnitor, for actual
expenses incurred in good faith, by reason of breach by the defendant of any of
the terms of the written agreement under which and pursuant to which the
undertaking of bail or bail bond was written. If there is no written agreement,
or an incomplete writing, the surety may, at law, enforce its equitable rights
against the principal and his indemnitors, in exoneration. Such reimbursement
or right of action must not exceed the principal sum of the bond or
undertaking, plus any reasonable expenses that may be verified by receipt in a
total amount of not more than the principal sum of
the bond or undertaking, incurred in good faith by the surety, its agents,
licensees and employees by reason of the principals breach.

the principal sum of the bond or
undertaking, incurred in good faith by the surety, its agents, licensees and
employees by reason of the principals breach.

2. This section does not prevent the full and unlimited
right of a bail agent to execute undertaking of bail on behalf of a nonresident
agent of the surety he represents. The licensed resident bail agent is entitled
to a minimum countersignature fee of $5, with a maximum countersignature fee of
$100, plus expenses incurred in accordance with paragraphs (c) and (d) of
subsection 1. Such countersignature fees may be charged in addition to the
premium of the undertaking.

Sec. 84. NRS 697.320 is hereby amended to
read as follows:

697.320 1. A bail agent may
accept collateral security in connection with a bail transaction if the
collateral security is reasonable in relation to the face amount of the bond. The bail agent shall not transfer the
collateral to any person other than a bail agent licensed pursuant to this
chapter or a surety insurer holding a valid certificate of authority issued by
the Commissioner. The collateral must not be transported or otherwise removed
from this state. Any person who receives the collateral:

(a) Shall
be deemed to hold the collateral in a fiduciary capacity to the same extent as
a bail agent; and

(b) Shall
retain, return and otherwise possess the collateral in accordance with the
provisions of this chapter.

2. The collateral security
must be received by the bail agent in his fiduciary capacity, and before any
forfeiture of bail must be kept separate and apart from any other funds or
assets of the licensee. Any collateral received must be returned to the person
who deposited it with the bail agent or any assignee other than the bail agent
as soon as the obligation, the satisfaction of which was secured by the
collateral, is discharged and all fees owed to the bail agent have been paid. The bail agent or any surety insurer
having custody of the collateral shall, immediately after the bail agent or
surety insurer receives a request for return of the collateral from the person
who deposited the collateral, determine whether the bail agent or surety
insurer has received notice that the obligation is discharged. If the collateral is deposited to secure the obligation
of a bond, it must be returned [within 30 days]immediately after receipt of the request for return of the collateral and
notice of the entry of any order by an authorized official by virtue of which liability under the bond is terminated
or upon payment of all fees owed to the bail agent, whichever is later. A
certified copy of the minute order from the court wherein the bail or
undertaking was ordered exonerated shall be deemed prima facie evidence of
exoneration or termination of liability.

3. If a bail agent receives as collateral in a bail transaction, whether on his
or another persons behalf, any document conveying title to real property, the
bail agent shall not accept the document unless it indicates on its face that
it is executed as part of a security transaction. If the document is recorded,
the bail agent or any surety insurer having possession of the document shall,
immediately after the bail agent or surety insurer receives a request for
return of the collateral from the person who executed the document:

(a) Determine
whether the bail agent or surety insurer has received notice that the
obligation for which the document was accepted is discharged; and

(b) If the
obligation has been discharged, reconvey the real property by delivering a deed
or other document of conveyance to the person or to his heirs, legal
representative or successor in interest. The deed or other document of
conveyance must be prepared in such a manner that it may be recorded.

4. If the
amount of any collateral received in a bail transaction exceeds the amount of
any bail forfeited by the defendant for whom the collateral was accepted, the
bail agent or any surety insurer having custody of the collateral shall,
immediately after the bail is forfeited, return to the person who deposited the
collateral the amount by which the collateral exceeds the amount of the bail
forfeited. Any collateral returned to a person pursuant to this subsection is
subject to a claim for fees, if any, owed to the bail agent returning the
collateral.

5. If a
bail agent accepts collateral, he shall give a written receipt
for the collateral. The receipt must include in detail a full account of the
collateral received.

Sec. 85. NRS 697.360 is hereby amended to
read as follows:

697.360 Licensed bail agents, bail solicitors and bail enforcement agents, and general
agents are also subject to the following provisions of this Code, to the extent
reasonably applicable:

1. Chapter 679A of NRS.

2. Chapter 679B of NRS.

3. NRS 683A.261.

4. NRS 683A.301.

[4.] 5. NRS 683A.311.

[5.] 6. NRS 683A.341.

[6.] 7. NRS 683A.361.

[7.] 8. NRS 683A.400.

[8.] 9. NRS 683A.451.

[9.] 10. NRS 683A.461.

[10.] 11. NRS 683A.480.

[11.] 12. NRS 683A.500.

13. NRS 683A.520.

[12.] 14. NRS 686A.010 to 686A.310, inclusive.

Sec. 85.5.NRS 178.512 is hereby amended to
read as follows:

178.512 The court shall not set aside a forfeiture
unless:

1. The surety submits an application to set it aside
on the ground that the defendant:

(a) Has appeared before the court since the date of the
forfeiture and has presented [a]:

(1)
A satisfactory excuse for his absence; or

(2)
Satisfactory evidence that the surety did not in any way cause or aid the
absence of the defendant;

(b) Was dead before the date of the forfeiture but the
surety did not know and could not reasonably have known of his death before
that date;

(c) Was unable to appear before the court before the
date of the forfeiture because of his illness or his insanity, but the surety
did not know and could not reasonably have known of his illness or insanity
before that date;

(d) Was unable to appear before the court before the
date of the forfeiture because he was being detained by civil or military
authorities, but the surety did not know and could not
reasonably have known of his detention before that date; or

the surety did not know and could not reasonably have known
of his detention before that date; or

(e) Was unable to appear before the court before the
date of the forfeiture because he was deported, but the surety did not know and
could not reasonably have known of his deportation before that date,

and the court, upon hearing the matter, determines that one
or more of the grounds described in this subsection exist and that the surety
did not in any way cause or aid the absence of the defendant; and

2. The court determines that justice does not require the
enforcement of the forfeiture.

Sec. 86. NRS 616B.318 is hereby amended to
read as follows:

616B.318 1. The Commissioner shall impose an
administrative fine, not to exceed $1,000 for each violation, and:

(a) Shall withdraw the certification of a self-insured
employer if:

(1) The deposit required pursuant to NRS
616B.300 is not sufficient and the employer fails to increase the deposit after
he has been ordered to do so by the Commissioner;

(2) The self-insured employer fails to provide
evidence of excess insurance pursuant to NRS 616B.300 within 45 days after he
has been so ordered; or

(3) [The]Except as otherwise provided in
subsection 4, the employer becomes insolvent, institutes any
voluntary proceeding under the Bankruptcy Act or is named in any involuntary
proceeding thereunder.

(b) May withdraw the certification of a self-insured
employer if:

(1) The employer intentionally fails to comply
with regulations of the Commissioner regarding reports or other requirements
necessary to carry out the purposes of chapters 616A to 616D, inclusive, and
chapter 617 of NRS;

(2) The employer violates the provisions of
subsection 2 of NRS 616B.500 or any regulation adopted by the Commissioner or
the Administrator concerning the administration of the employers plan of
self-insurance; or

(3) The employer makes a general or special
assignment for the benefit of creditors or fails to pay compensation after an
order for payment of any claim becomes final.

2. Any employer whose certification as a self-insured
employer is withdrawn must, on the effective date of the withdrawal, qualify as
an employer pursuant to NRS 616B.650.

3. The Commissioner may, upon the written request of
an employer whose certification as a self-insured employer is withdrawn
pursuant to subparagraph (3) of paragraph (a) of subsection 1, reinstate the
employers certificate for a reasonable period to allow the employer sufficient
time to provide industrial insurance for his employees.

4. The
Commissioner may authorize an employer to retain his certification as a
self-insured employer during the pendency of a proceeding specified in
subparagraph (3) of paragraph (a) of subsection 1 if the employer establishes
to the satisfaction of the Commissioner that the employer is able to pay all
claims for compensation during the pendency of the proceeding.

Sec. 87. NRS 616B.336 is hereby amended to
read as follows:

616B.336 1. Each self-insured employer shall furnish
audited financial statements, certified by an auditor licensed to do business
in this state, to the Commissioner [of Insurance
annually.]

state, to the Commissioner [of Insurance annually.] annually within 120 days after the
expiration of the self-insured employers fiscal year.

2. The Commissioner [of Insurance]
may examine the records and interview the employees of each self-insured
employer as often as he deems advisable to determine the adequacy of the
deposit which the employer has made with the Commissioner, the sufficiency of
reserves and the reporting, handling and processing of injuries or claims. The
Commissioner shall examine the records for that purpose at least once every 3
years. The self-insured employer shall reimburse the Commissioner for the cost
of the examination.

Sec. 88. NRS 616B.359 is hereby amended to
read as follows:

616B.359 1. The Commissioner shall grant or deny an
application for certification as an association of self-insured public or
private employers within 60 days after receiving the application. If the
application is materially incomplete or does not comply with the applicable
provisions of the law, the Commissioner shall notify the applicant of the
additional information or changes required. Under such circumstances, if the
Commissioner is unable to act upon the application within this 60-day period,
he may extend the period for granting or denying the application, but for not
longer than an additional 90 days.

2. Upon determining that an association is qualified
as an association of self-insured public or private employers, the Commissioner
shall issue a certificate to that effect to the association and the
Administrator. No certificate may be issued to an association that, within the
2 years immediately preceding its application, has had its certification as an
association of self-insured public or private employers involuntarily withdrawn
by the Commissioner.

3. A certificate issued pursuant to this section must
include, without limitation:

(a) The name of the association;

(b) The name of each employer who the Commissioner
determines is a member of the association at the time of the issuance of the
certificate;

(c) An identification number assigned to the
association by the Commissioner; and

(d) The date on which the certificate was issued.

4. A certificate issued pursuant to this section
remains in effect until withdrawn by the Commissioner or cancelled at the
request of the association. Coverage for an association granted a certificate
becomes effective on the date of certification or the date specified in the
certificate.

5. The Commissioner shall not grant a request to
cancel a certificate unless the association has insured or reinsured all
incurred obligations with an insurer authorized to do business in this state
pursuant to an agreement filed with and approved by the Commissioner. The
agreement must include coverage for actual claims and claims [filed
with the association]incurred but not reported, and the expenses
associated with those claims.

Sec. 89. NRS 616B.386 is hereby amended to
read as follows:

616B.386 1. If an employer wishes to become a member
of an association of self-insured public or private employers, the employer
must:

(a) Submit an application for membership to the board
of trustees or third-party administrator of the association; and

2. The membership of the applicant becomes effective
when each member of the association approves the application or on a later date
specified by the association. The application for membership and the action
taken on the application must be maintained as permanent records of the board
of trustees.

3. Each member who is a member of an association
during the 12 months immediately following the formation of the association
must:

(a) Have a tangible net worth of at least $500,000; or

(b) Have had a reported payroll for the previous 12
months which would have resulted in a manual premium of at least $15,000,
calculated in accordance with a manual prepared pursuant to subsection 4 of NRS
686B.1765.

4. An employer who seeks to become a member of the
association after the 12 months immediately following the formation of the
association must meet the requirement set forth in paragraph (a) or (b) of
subsection 3 unless the Commissioner adjusts the requirement for membership in
the association after conducting an annual review of the actuarial solvency of
the association pursuant to subsection 1 of NRS 616B.353.

5. An association of self-insured private employers
may apply to the Commissioner for authority to determine the amount of tangible
net worth and manual premium that an employer must have to become a member of
the association. The Commissioner shall approve the application if the
association:

(a) Has been certified to act as an association for at
least the 3 consecutive years immediately preceding the date on which the
association filed the application with the Commissioner;

(b) Has a combined tangible net worth of all members in
the association of at least $5,000,000;

(c) Has at least 15 members; and

(d) Has not been required to meet informally with the
Commissioner pursuant to subsection 1 of NRS 616B.431 during the 18-month
period immediately preceding the date on which the association filed the
application with the Commissioner or, if the association has been required to
attend such a meeting during that period, has not had its certificate withdrawn
before the date on which the association filed the application.

6. An association of self-insured private employers
may apply to the Commissioner for authority to determine the documentation
demonstrating solvency that an employer must provide to become a member of the
association. The Commissioner shall approve the application if the association:

(a) Has been certified to act as an association for at
least the 3 consecutive years immediately preceding the date on which the
association filed the application with the Commissioner;

(b) Has a combined tangible net worth of all members in
the association of at least $5,000,000; and

(c) Has at least 15 members.

7. The Commissioner may withdraw his approval of an
application submitted pursuant to subsection 5 or 6 if he determines the
association has ceased to comply with any of the requirements set forth in
subsection 5 or 6, as applicable.

8. A member of an association may terminate his
membership at any time. To terminate his membership, a member must submit to
the associations administrator a notice of intent to
withdraw from the association at least 120 days before the effective date of
withdrawal.

associations administrator a notice of intent to withdraw
from the association at least 120 days before the effective date of withdrawal.
The [associations administrator shall, within 10 days after
receipt of the notice, notify the Commissioner of the employers]notice of intent to
withdraw [from the association.] must include a statement indicating
that the member has:

(a) Been
certified as a self-insured employer pursuant to NRS 616B.312;

(b) Become
a member of another association of self-insured public or private employers; or

(c) Become
insured by a private carrier.

9. The members of an association may cancel the
membership of any member of the association in accordance with the bylaws of
the association.

10. The association shall:

(a) Within 30 days after the addition of an employer to
the membership of the association, notify the Commissioner of the addition and:

(1) If the association has not received
authority from the Commissioner pursuant to subsection 5 or 6, as applicable,
provide to the Commissioner all information and assurances for the new member
that were required from each of the original members of the association upon
its organization; or

(2) If the association has received authority
from the Commissioner pursuant to subsection 5 or 6, as applicable, provide to
the Commissioner evidence that is satisfactory to the Commissioner that the new
member is a member or associate member of the bona fide trade association as
required pursuant to paragraph (a) of subsection 2 of NRS 616B.350, a copy of
the indemnity agreement that jointly and severally binds the new member, the
other members of the association and the association that is required to be
executed pursuant to paragraph (a) of subsection 1 of NRS 616B.353 and any
other information the Commissioner may reasonably require to determine whether
the amount of security deposited with the Commissioner pursuant to paragraph
(d) or (e) of subsection 1 of NRS 616B.353 is sufficient, but such information
must not exceed the information required to be provided to the Commissioner
pursuant to subparagraph (1);

(b) Notify the Commissioner and the Administrator of
the termination or cancellation of the membership of any member of the
association within 10 days after the termination or cancellation; and

(c) At the expense of the member whose membership is
terminated or cancelled, maintain coverage for that member for 30 days after a notice is given
pursuant to paragraph (b), unless the association first receives notice from
the Administrator that the member has:

(1) Been certified as a self-insured employer
pursuant to NRS 616B.312;

(2) Become a member of another association of
self-insured public or private employers; or

(3) Become insured by a private carrier.

11. If a member of an association changes his name or
form of organization, the member remains liable for any obligations incurred or
any responsibilities imposed pursuant to chapters 616A to 617, inclusive, of
NRS under his former name or form of organization.

12. An association is liable for the payment of any
compensation required to be paid by a member of the association pursuant to
chapters 616A to 616D, inclusive, or chapter 617 of NRS
during his period of membership.

to 616D, inclusive, or chapter 617 of NRS during his period
of membership. The insolvency or bankruptcy of a member does not relieve the
association of liability for the payment of the compensation.

Sec. 90. NRS 616B.404 is hereby amended to
read as follows:

616B.404 1. An association of self-insured public or
private employers shall file with the Commissioner an audited statement of
financial condition prepared by an independent certified public accountant. The
statement must be filed on or before [April]May 1 of each year
or within [90] 120 days after the conclusion of the
associations fiscal year[,]
and must contain
information for the previous fiscal year.

2. The statement required by subsection 1 must be in a
form prescribed by the Commissioner and include, without limitation:

(a) A statement of the reserves for:

(1) Actual claims and expenses;

(2) Claims [filed with the
association]incurred
but not reported, and the expenses associated with those claims;

(3) Assessments that are due, but not paid; and

(4) Unpaid debts, which must be shown as
liabilities.

(b) An actuarial opinion regarding reserves that is
prepared by a member of the American Academy of Actuaries or another specialist
in loss reserves identified in the annual statement adopted by the National
Association of Insurance Commissioners. The actuarial opinion must include a
statement of:

(1) Actual claims and the expenses associated
with those claims; and

(2) Claims [filed with the
association]incurred
but not reported, and the expenses associated with those claims.

3. The Commissioner may adopt a uniform financial
reporting system for associations of self-insured public and private employers
to ensure the accurate and complete reporting of financial information.

4. The Commissioner may require the filing of such other
reports as he deems necessary to carry out the provisions of this section,
including, without limitation:

(a) Audits of the payrolls of the members of an
association of self-insured public or private employers;

(b) Reports of losses; and

(c) Quarterly financial statements.

Sec. 91. NRS 616B.413 is hereby amended to
read as follows:

616B.413 1. If the assets of an association of
self-insured public or private employers exceed the amount necessary for the
association to:

(a) Pay its obligations and administrative expenses;

(b) Carry reasonable reserves; and

(c) Provide for contingencies,

the board of trustees of the association may, after obtaining
the approval of the Commissioner, declare and distribute dividends to the
members of the association.

2. Any dividend declared pursuant to subsection 1 must
be distributed not less than 12 months after the end of the [fiscal]fund year.

3. A dividend may be paid only to those members who
are members of the association for the entire [fiscal]fund year. The
payment of a dividend must not be conditioned upon the member continuing his
membership in the association after the [fiscal]fund year.

(b) Claims [filed with the
association]incurred
but not reported, and the expenses associated with those claims.

2. Reserves for uncollected debts based on the
experience of the association or other associations.

Sec. 94. NRS 616B.422 is hereby amended to
read as follows:

616B.422 1. If the assets of an association of
self-insured public or private employers are insufficient to make certain the
prompt payment of all compensation under chapters 616A to 617, inclusive, of
NRS and to maintain the reserves required by NRS 616B.419, the association
shall immediately notify the Commissioner of the deficiency and:

(a) Transfer any surplus acquired from a previous [fiscal]fund year to the
current [fiscal]fund year to make up the deficiency;

(b) Transfer money from its administrative account to
its claims account;

(c) Collect an additional assessment from its members
in an amount required to make up the deficiency; or

(d) Take any other action to make up the deficiency
which is approved by the Commissioner.

2. If the association wishes to transfer any surplus
from one [fiscal]fund year to another, the association must
first notify the Commissioner of the transfer.

3. The Commissioner shall order the association to
make up any deficiency pursuant to subsection 1 if the association fails to do
so within 30 days after notifying the Commissioner of the deficiency. The
association shall be deemed insolvent if it fails to:

(a) Collect an additional assessment from its members
within 30 days after being ordered to do so by the Commissioner; or

(b) Make up the deficiency in any other manner within
60 days after being ordered to do so by the Commissioner.

Sec. 95. The amendatory provisions of sections
56.7 and 56.9 of this act:

1. Do not apply to any contract of annuity that is
delivered or issued for delivery in this state before October 1, 2003.

2. Do not apply to any contract of annuity that is
delivered or issued for delivery in this state on or after October 1, 2003, and
before October 1, 2005, unless the company elects to incorporate the substance
of those amendatory provisions into the contract.

3. Apply to any contract of annuity that is delivered
or issued for delivery in this state on or after October 1, 2005.

Sec. 96. 1. The Governor or his
designee shall conduct a study of the feasibility and potential benefits of
consolidating the powers and duties of the Division of Insurance of the
Department of Business and Industry and the Division of Industrial Relations of
the Department of Business and Industry into a single division within the
Department of Business and Industry.

2. The study must include, without limitation:

(a) An assessment of whether such a consolidation would
increase administrative efficiency, improve regulation and result in cost
savings.

(b) An assessment of whether such a consolidation would
benefit the businesses and industries regulated by the Division of Insurance
and the Division of Industrial Relations.

3. Not later than October 1, 2004, the Governor or his
designee shall prepare a report that contains the findings of the study and
submit the report and any recommendations for legislation to the Director of
the Legislative Counsel Bureau for transmittal to:

(a) The Senators who served as members of the Senate
Standing Committee on Commerce and Labor during the 72nd Session of the Nevada
Legislature;

(b) The Assemblymen who served as members of the
Assembly Standing Committee on Commerce and Labor during the 72nd Session of
the Nevada Legislature; and

(c) Any other Senators or Assemblymen upon request.

Sec. 97. 1. This section and section 96 of
this act become effective upon passage and approval.

2. Sections 3.3 and 3.7 of this act become effective:

(a) Upon passage and approval of this act, if Assembly Bill
No. 79 of this session is enacted into law before passage and approval of this
act; or

(b) Upon passage and approval of Assembly Bill No. 79 of
this session, if Assembly Bill No. 79 of this session is enacted into law after
passage and approval of this act.

3. Sections 56.7 and 56.9 of this act become effective on
July 1, 2003, for the purpose of adopting regulations and on October 1, 2003,
for all other purposes.

4. Sections 1, 2, 3, 4 to 56.5, inclusive, and 57 to 95,
inclusive, of this act become effective on October 1, 2003.